The Solution to This Problem Requires Time Value of Money

question 63

Multiple Choice

The solution to this problem requires time value of money calculations.Reference to Tables 9-1 through 9-4 in the text is necessary to complete the calculations. Marti and Sue want to buy a house in 4 years.If the house will cost $180,000,how much must they deposit at the end of every year for the next 4 years at 5% compounded annually in order to buy the house?

• A)$32,040
• B)$36,990
• C)$41,763
• D)$45,000

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Definitions:

Hormones

Chemical messengers produced by endocrine glands that regulate various bodily functions and processes.

Sympathetic Nervous System

A part of the autonomic nervous system that prepares the body for action by accelerating the heart rate, constricting blood vessels, and raising blood pressure.

State of Arousal

A condition of heightened physiological and psychological activity, including alertness and physical preparedness.

Blood Pressure

The pressure exerted by circulating blood upon the walls of blood vessels, a critical indicator of cardiovascular health.