Betty Wants to Accumulate $1 Million by the End of 20

question 76

Multiple Choice

Betty wants to accumulate $1 million by the end of 20 years by making equal annual year-end deposits over the next 20 years.Assuming Betty can earn 10 percent over this period,how much must she deposit at the end of each year?

• A)$18 560
• B)$22 480
• C)$27 760
• D)$17 460

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Definitions:

Standard Deviation

A statistic that quantifies the dispersion or variability of a dataset, measuring the average distance between each data point and the mean.

Z-score

A quantitative measure that demonstrates the correlation of a specific value to the mean of a dataset, identifying its separation from the mean by counting the standard deviations.

Standard Normal Random Variable

A type of random variable that has a mean of 0 and a standard deviation of 1, following the standard normal distribution.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, indicating how much the values differ from the mean of the data set.