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:

Northwest Territory

A historical region in the United States that encompassed land west of Pennsylvania, north of the Ohio River, and east of the Mississippi River, designated for future expansion.

Sovereign Nation

A politically independent state or country recognized by other nations, having full control over its own territory and government without external influence.

Barbary Leaders

The rulers of the Barbary States in North Africa, known in the early modern period for their engagement in piracy and slave trade, impacting European and American shipping.

Pirating

The unauthorized use, reproduction, or distribution of copyrighted or patented material.