Use the Information for the Question(s)below

question 72

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%.
-If the appropriate interest rate is 8%,then present value of $500 paid at the beginning of each of the next 40 years is closest to:

• A)$23.
• B)$5962.
• C)$6439.
• D)$20,000.

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Definitions:

Ethical Choices

Decisions made based on moral principles and values, often reflecting considerations of what is right and fair.

Production Line

A manufacturing process where parts are added in a sequential manner to produce a final product efficiently.

Different Code Of Ethics

Distinct sets of principles and values that guide the behavior of individuals or members of a profession.

Language Barriers

Communication obstacles arising from differences in language or dialect between individuals.