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You Have Deposited $7,620 in a Special Account That Has

Question 11

Multiple Choice

You have deposited $7,620 in a special account that has a guaranteed rate of return of 19% per year. If you are willing to completely exhaust the account, what is the maximum amount that you could withdraw at the end of each of the next 7 years? Select the amount below that is closest to your answer. (Ignore income taxes.) Use Exhibit 7B-1 and Exhibit 7B-2, to determine the appropriate discount factor(s) using the tables provided. (Round your intermediate calculations to 3 decimal places.)


A) $1,295
B) $2,056
C) $2,219
D) $1,089

Correct Answer:

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