What Is the Size of the Payments That Must Be

question 33

Multiple Choice

What is the size of the payments that must be deposited at the beginning of each 6-month period in an account that pays an annual rate of 8%, compounded semiannually, so that the account will have a future value of $110,000 at the end of 11 years? Round your answer to the nearest cent. ​

• A)$17,573.48
• B)$7,842.69
• C)$916.44
• D)$3,088.34
• E)$1,597.49

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Definitions:

Income Shares

A method often used in family law to determine the amount of child support payments based on the proportional income of each parent.

National Income

The total value of all goods and services produced by a country over a specific period, usually measured as Gross National Product (GNP) or Net National Product (NNP).

Capitalists

Individuals or entities that own capital goods, invest in production, and seek to generate profits within an economy.

Labor

The application of physical and cognitive labor in the manufacture of goods and provision of services.