Sally Is Currently 30 Years Old and Is Planning for Her

question 88

Essay

Sally is currently 30 years old and is planning for her retirement.She would like to have an income of $55,000 per year during her retirement,which she anticipates will last for another 25 years.Assume that she receives the retirement income at the end of each of the 25 years.
Required:
Determine the amount of money Sally will need to have accumulated by the time she starts her retirement.Assume a discount rate of 4%.

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Definitions:

Door-In-The-Face Technique

Influence technique based on reciprocity, in which one starts with an inflated request and then retreats to a smaller request that appears to be a concession.

Labeling Technique

Influence technique based on consistency, in which one assigns a label to an individual and then requests a favor that is consistent with the label.

Self-Fulfilling Prophecy

A forecast that, either directly or indirectly, ensures its own accuracy through a positive loop between what is believed and how one acts.

Foot-In-The-Door Technique

Influence technique based on commitment, in which one starts with a small request in order to gain eventual compliance with a larger request.