Looking Far Ahead, Your Grandmother Makes a One-Time Payment of $200,000

question 11

Multiple Choice

Looking far ahead, your grandmother makes a one-time payment of $200,000 to obtain a monthly income for 20 years. Assuming a steady interest rate of 4% compounded monthly, what monthly payments will she receive?

• A) $833.33
• B) $1000.83
• C) $1117.96
• D) $1211.96

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Definitions:

Quantifier

A symbolic expression in logic that specifies the quantity of specimens in the domain of discourse that satisfy an open formula.

Atomic Open Sentence

A simple sentence in symbolic logic that contains variables but does not contain any logical connectives and cannot be further divided into simpler sentences.

Compound

A thing that is composed of two or more separate elements.

Atomic

Relating to atoms, the smallest component of an element having the chemical properties of the element.