Use the Following Information for Questions

question 17

Multiple Choice

Use the following information for questions
Mary needs $145,000 in 15 years to buy her son a new Ferrari. Assume that she can earn an 8% after-tax return on her investment. You may ignore inflation in these calculations.
-How much will Mary need to invest each year for the next 15 years if investments are made at the end of each year?

• A) $5,340
• B) $22,280
• C) $45,710
• D) $9,667
• E) None of the above. No one should own a Ferrari.

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Definitions:

Democratic

Pertaining to a system of government or organization where decisions are made by the majority or through elected representatives.

Life Span Developmental

The study of how individuals grow and change from infancy through old age, encompassing physical, cognitive, and socioemotional development.

Human Development

The process of growth and change that occurs throughout a person’s life, encompassing physical, cognitive, and socioemotional changes.

Adaptation

The process of adjusting or conforming to new conditions or environments.