Suppose You Are 22 and Wish to Retire at 65

question 177

Multiple Choice

Suppose you are 22 and wish to retire at 65. Which of the following options will result in a greater future value at retirement? Option 1 is to invest $15,000 per year for eight years, and then leave it untouched for 35 years. Option 2 is to deposit $7,500 at the end of each year into an investment for 43 years. Both accounts earn 9% per year.

• A) Option 1 is better with a value of $3,599,024
• B) Option 1 is better with a value of $3,377,024
• C) Option 2 is better with a value of $3,905,602
• D) Option 2 is better with a value of $3,675,988
• E) Option 2 is better with a value of $3,776,405

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Definitions:

Preconventional Behavior

A stage in moral development where an individual's ethical principles are guided mainly by external consequences and rewards.

Conflict of Interest

A situation in which a person's personal interests could potentially influence their professional judgment or actions.

Ethical Principles

The fundamental guidelines for moral conduct that inform ethical decisions and actions, embracing values such as fairness, responsibility, and respect for others.

Business Situations

Various scenarios or contexts within the business environment, such as negotiations, strategic planning, or crisis management, that require specific approaches or decisions.