Charlie Stone Wants to Retire in 30 Years, and He

question 23

Multiple Choice

Charlie Stone wants to retire in 30 years, and he wants to have an annuity of $1,000 a year for 20 years after retirement. Charlie wants to receive the first annuity payment at the end of the 30th year. Using an interest rate of 10%, how much must Charlie invest today in order to have his retirement annuity (round to the nearest $10) ?

• A) $500
• B) $490
• C) $540
• D) $570

---

Definitions:

Rehearsal

A practice session in preparation for a public performance (as of a play or speech) or procedure.

Chunking

Chunking is a process of breaking down larger pieces of information into more manageable, smaller units, making it easier to remember and process.

Short-Term Memory Capacity

The amount of information that can be held in the mind for a brief period of time, typically seconds to minutes.

Iconic Memory

A type of visual memory that lasts only a fraction of a second, allowing the brain to take a "snapshot" of the visual field.