You Are Going to Pay $800 into an Account at the Beginning

question 74

Multiple Choice

You are going to pay $800 into an account at the beginning of each of 20 years. The account will then be left to compound for an additional 20 years. At the end of the 41st year you will begin receiving a perpetuity from the account. If the account pays 14%, how much will you receive each year from the perpetuity (round to nearest $1.00) ?

• A) $140,112
• B) $150,360
• C) $159,728
• D) $182,090

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Definitions:

Disenfranchised

Individuals or groups stripped of their rights or privileges, particularly referring to the loss of voting rights.

Voting Rights

The entitlements of citizens to participate in the election of officials and to have a say in governmental decisions through the act of voting.

Suffrage

The right to vote in public elections.

Opinion Leaders

High-profile individuals whose interpretation of events influences the public.