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

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Definitions:

Childhood Development

The physical, cognitive, emotional, and social changes that occur from birth until the end of adolescence, as the individual progresses from dependency to increasing autonomy.

Jean Piaget

A Swiss psychologist renowned for his pioneering work in the field of developmental psychology, especially his theory of cognitive development in children.

Psychological Meanings

The interpretations and importance given to certain phenomena, objects, or events based on psychological perspectives and individual mental frameworks.

Biological Male

An individual whose primary sexual characteristics and genetic makeup at birth are typically associated with the male sex.