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:

Solver

A software tool used in optimization that finds the optimal solution to a problem by varying the values of variables within constraint boundaries.

Monthly Profit

The total revenue generated by a business minus its expenses, taxes, and costs, calculated on a monthly basis.

Quality Check Department

A dedicated section within an organization focused on ensuring products or services meet quality standards through systematic inspection and testing processes.

Solver

A computational tool used in optimization that finds the best solution to a problem by varying different variables within certain constraints.