Ingrid Birdman Can Earn a Nominal Annual Rate of Return

question 21

Multiple Choice

Ingrid Birdman can earn a nominal annual rate of return of 12%, compounded semiannually. If Ingrid made 40 consecutive semiannual deposits of $500 each, with the first deposit being made today, how much will she accumulate at the end of Year 20? Round off to the nearest $1.

• A) $52,821
• B) $57,901
• C) $82,024
• D) $64,132

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Definitions:

Judging

In personality typing, this refers to a preference for living in a structured manner, making decisions and planning ahead, as opposed to preferring flexibility.

Best Practices

are methods or techniques that have been identified as the most effective and efficient way to achieve desired results in a specific field or industry.

Age and Success

The concept that the achievement of success is influenced by or varies according to an individual's age.

Unconsciously Competent

Describes a level of skill mastery where an individual executes tasks with high proficiency without conscious effort or attention.