Starting in 5 Years and 6 Months You Want to Be

question 84

Multiple Choice

Starting in 5 years and 6 months you want to be able to withdraw $950 every three months for 3 years and 3 months. You want to deposit a single amount immediately and then let it grow at a rate of 7.24% compounded quarterly. How much interest did you earn during the entire period of time?

• A) $2090.47
• B) $2099.47
• C) $4589.47
• D) $4859.47
• E) $4888.47

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Definitions:

Purchase

is the action of acquiring goods or services in exchange for money or an equivalent consideration.

Chi-Square

A statistical test used to determine if there is a significant difference between the expected frequencies and the observed frequencies in one or more categories.

Goodness-Of-Fit Test

A statistical test used to see how well sample data fit a distribution from a population with a normal distribution.

Lower-Tail Test

A statistical test used to determine if a data sample is significantly lower than the population mean.