Anita Contributes a Lump Sum of $50,000 and $350 Per

question 126

Multiple Choice

Anita contributes a lump sum of $50,000 and $350 per month in an investment earning 5.5% compounded monthly over a 10-year period. At the end of the 10th year, Anita plans to transfer her investment into another account where she can withdraw $4,000 per quarter for 10 years and still have $10,000 remaining. Based on quarterly compounding, determine what the rate of interest that will achieve this goal.

• A) 2.39%
• B) 2.89%
• C) 3.39%
• D) 4.39%
• E) 4.89%

---

Definitions:

MBCT

Mindfulness-Based Cognitive Therapy, a psychological therapy designed to aid in preventing the relapse of depression, specifically in individuals with major depressive disorder.

Major Depression

A psychiatric disorder whereby an individual experiences a sustained depressive mood or disinterest in activities, greatly impairing their day-to-day life.

Cognitive Reactivity

The tendency of an individual's cognitive processes to be influenced by emotional states, often leading to exaggerated negative thoughts in response to mood changes.

Differential Activation

A concept in psychology that refers to the way certain stimuli can activate different emotions, behaviors, or thoughts depending on an individual's current state or context.