Question

Tory Invested $600 a year for three years, then $700 a year for an additional four years. In year 9, she withdrew $1,500. She withdrew the entire Investment in year 11. Which statement correctly applies to the time line for this problem?

Answer 1

Ans : From the Given information it seems that Tony has Invested in a Plan with Maturity Period of 11 Years compounding annually. The Investments made is as below :  

Amt of Investment Required per year	No. of Years	Period
$ 600	3	1 - 3 years
$ 700	4	4 - 7 years
$ 0	Remaining years (i.e. 4years)	8 - 11 years

Hence, the statement which correctly applies to the time line of this problem is that it is compounding investment with period of 11 years where investments were made as per the above table.

Note : 1) It is assumed that returns are compounded rather the simple interest
2) Since no information is given on investment made for 8-11 years. It is assumed that 0 investment was made during that period.