Suppose Becky Has Her Choice of $10,000 at the End

question 99

Multiple Choice

Suppose Becky has her choice of $10,000 at the end of each month for life or a single prize of $1.5 million. She is 35 years old and her life expectancy is 40 more years. If she takes the $1.5 million, spends $700,000 of it, and invests the remainder at an annual rate of 7.3% compounded monthly, what monthly annuity will she receive for the next 40 years? Round your answer to the nearest cent. ​

• A) $514.67
• B) $5,146.71
• C) $54,683.84
• D) $1,930.02
• E) $7,720.07

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Definitions:

Neurotransmitters

Neurotransmitters are chemicals found in the nervous system that transmit signals across a synapse from one neuron to another, influencing mental processes and behavior.

Myelin

An insulating layer, or sheath, made of protein and fatty substances, that surrounds the axons of some neurons, enabling fast and efficient transmission of electrical impulses.

Synaptic Cleft

The small gap at a synapse between neurons, across which neurotransmitters move from one neuron to another.

Terminal Buttons

The small knobs at the end of an axon that release chemicals called neurotransmitters into the synapse, thereby transmitting nerve impulses to another nerve cell.