Monica Has Decided That She Wants to Build Enough Retirement

question 58

Multiple Choice

Monica has decided that she wants to build enough retirement wealth that, if invested at 7 percent per year, will provide her with $3,000 monthly income for 30 years. To date, she has saved nothing, but she still has 20 years until she retires. How much money does she need to contribute per month to reach her goal?

• A) $671.78
• B) $865.62
• C) $3,000.00
• D) $7,025.77

Grasp the role of adjustment processes in coping with life challenges.

Understand the concept of interest rates and how they affect financial decisions.

Calculate the present value and future value of single payments.

Analyze different investment or savings options based on their present or future values.

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Definitions:

Refrigeration

The process of cooling or freezing a space or substances to preserve perishable items, such as food or medicine.

Food Additives

Substances added to food to preserve flavor or enhance its taste, appearance, or other qualities.

Lung Cancer

A form of cancer that begins in the lung tissues, commonly linked to smoking and contact with hazardous materials.

Stomach Cancer

A type of cancer that begins in the stomach, also known as gastric cancer.