Peter Makes a $25,000 Lump Sum Amount in an Account

question 38

Multiple Choice

Peter makes a $25,000 lump sum amount in an account earning 4.5% compounded quarterly. He plans to withdraw $250 per month over three years. Determine the future value of the account at the end of this period.

• A) $22,674.15
• B) $21,081.08
• C) $19,528.82
• D) $18,977.74
• E) $17,602.45

---

Definitions:

Record

In computing, a collection of related items of data treated as a single unit, often within a database.

Attribute

A quality or characteristic given to a person, group, or some other entity, or a specification in coding to define properties of elements.

Field

An area in a database or a form where a specific piece of data is stored, such as a name or date.

Column

In databases, a column is a vertical arrangement of data in a table, containing information on a specific attribute of the entity recorded.