Use the Information for the Question(s)below

question 42

Multiple Choice

Use the information for the question(s) below.
Assume that you are 30 years old today and that you are planning on retirement at age 65.Your current salary is $45,000 and you expect your salary to increase at a rate of 5% per year as long as you work.To save for your retirement,you plan on making annual contributions to a retirement account.Your first contribution will be made on your 31st birthday and will be 8% of this year's salary.Likewise,you expect to deposit 8% of your salary each year until you reach age 65.Assume that the rate of interest is 7%.
-The present value (at age 30) of your retirement savings is closest to:

• A)$87,000.
• B)$108,000.
• C)$46,600.
• D)$75,230.

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Definitions:

Self-concept

An individual's perception of themselves, encompassing beliefs and feelings about one's personal attributes and how one evaluates oneself.

Self-esteem

An individual's subjective evaluation of their own worth, encompassing beliefs about oneself as well as an emotional state such as pride or despair.

Social Comparison

The act of comparing oneself to others in order to evaluate one's own abilities, successes, and characteristics.

Self-concept

An individual's perception of themselves, including beliefs about one's abilities, appearance, and personality.