Computing Annuity Payment: Jane Ogden Wants to Save for a Trip

question 2

Multiple Choice

Computing annuity payment: Jane Ogden wants to save for a trip to Australia. She will need $12,000 at the end of four years. She can invest a certain amount at the beginning of each of the next four years in a bank account that will pay her 6.8 per cent annually. How much will she have to invest annually to reach her target? (Round to the nearest dollar.)

• A) $3,000
• B) $2,980
• C) $2,538
• D) $2,711

---

Definitions:

Fibrous Capsule

A dense connective tissue layer that encloses certain organs, providing protection and structural support.

Medial Meniscus

A C-shaped cartilage located in the knee, playing a critical role in stabilizing and cushioning the joint.

Autoimmune Disease

A condition arising from an abnormal immune response to a normal body part, leading to inflammation and damage.

Uric Acid

A waste product formed from the breakdown of purines, high levels of which can lead to gout and kidney stones.