George and Laura Will Be Retiring in Four Years and Would

question 118

Multiple Choice

George and Laura will be retiring in four years and would like to buy a holiday house.They estimate that they will need $550,000 at the end of four years to buy this house.They want to make four equal annual payments into an account at the end of each year.If they can earn 8% on their money,compounded annually,over the next four years,how much must they invest at the end of each year for the next four years to have accumulated $550,000 by retirement?

• A)$137,500
• B)$122,056
• C)$113,015
• D)$131,821

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Definitions:

General Theme

The central idea or underlying message conveyed by a piece of writing, speech, or work of art.

Distant Future

A time period far ahead from the present, often considered in planning, forecasting, or speculative discussions.

Natural Selection

The process by which organisms better adapted to their environment tend to survive and produce more offspring, a key mechanism of evolution.

Group Selection

A theoretical evolutionary process that argues for the selection of traits beneficial to a group, rather than individuals.