How Much Would You Have to Invest Each Month in an Annuity

question 25

Multiple Choice

How much would you have to invest each month in an annuity earning 7.4% monthly to earn $15,000 at the end of 10 years?

• A) $84.77
• B) $98.83
• C) $146.93
• D) $152.15

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Definitions:

Egocentric Thought

Thinking that does not take into account the viewpoints of others.

Centration

A cognitive limitation in early childhood thinking, characterized by focusing on one aspect of a situation while neglecting others.

Decentering

The cognitive ability to consider multiple aspects of a situation or problem simultaneously, crucial for understanding others’ perspectives and for problem-solving.

Formal Operations

Formal operations is a stage in Piaget's theory of cognitive development, where individuals gain the ability to think abstractly, logically, and systematically.