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

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Definitions:

Electrical Charge

A physical property of matter that causes it to experience a force when placed in an electromagnetic field; comes in positive and negative forms.

Dendrites

Branch-like extensions of neurons that receive signals from other neurons.

Axon

A long, slender projection of a nerve cell that typically conducts electrical impulses away from the neuron's cell body.

Soma

The body of a neuron, containing the nucleus and metabolic machinery necessary for maintaining cell functions.