If You Have $20,000 in an Account Earning 8% Annually

question 99

Multiple Choice

If you have $20,000 in an account earning 8% annually, what constant amount could you withdraw each year and have nothing remaining at the end of five years?

• A) $3,525.62
• B) $5,008.76
• C) $3,408.88
• D) $2,465.78

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Definitions:

Lipids

A broad group of naturally occurring molecules that include fats, waxes, and certain vitamins, playing crucial roles in the structure and function of living cells.

Calorie

A unit of energy measurement used to quantify the amount of energy derived from food consumed by an organism.

Carbohydrate

Organic compounds, consisting of carbon, hydrogen, and oxygen, that are broken down to release energy in the human body, including sugars, starch, and fiber.

Daily Caloric Intake

The total amount of calories a person consumes in a day, which can vary based on age, gender, activity level, and weight management goals.