When You Retire 36 Years from Now, You Want to Have

question 137

Multiple Choice

When you retire 36 years from now, you want to have $2 million. You think you can earn an average of 11.5% on your investments. To meet your goal, you are trying to decide whether to deposit a lump sum today, or to wait and deposit a lump sum 3 years from today. How much more will you have to deposit as a lump sum if you wait for 3 years before making the deposit?

• A) $15,344.14
• B) $15,677.78
• C) $16,208.11
• D) $17,021.12
• E) $19,407.78

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Definitions:

Hippocampus

A temporal lobe structure that plays a pivotal role in learning and forming new memories.

Mental Imagery

The cognitive process of visualizing scenes, objects, or events without their immediate presence.

Spatial Location

The specific physical position or area in space that an object or person occupies.

Paired Associate Learning

A learning process where two items are linked together in a person's mind, enhancing the recall of one item when presented with the other.