Last Year, You Deposited $25,000 into a Retirement Savings Account

question 44

Multiple Choice

Last year, you deposited $25,000 into a retirement savings account at a fixed rate of 7.5%. Today, you could earn a fixed rate of 8% on a similar type account. However, your rate is fixed and cannot be adjusted. How much less could you have deposited last year if you could have earned a fixed rate of 8% and still have the same amount as you currently will when you retire 40 years from today?

• A) $1,218.46 less
• B) $1,666.67 less
• C) $2,408.28 less
• D) $3,628.09 less
• E) $4,331.30 less

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Definitions:

PTSD

Post-traumatic Stress Disorder; a mental health condition triggered by experiencing or witnessing a terrifying event, characterized by severe anxiety, nightmares, and flashbacks.

Munchausen-by-proxy Syndrome

A psychiatric disorder where a caretaker fabricates or induces illness in another person, typically a child, to gain attention or sympathy.

Munchausen Syndrome

A psychiatric disorder where a person repeatedly and deliberately acts as if they have a physical or mental illness when they are not really sick.

Nyctophobia

An intense fear of darkness or the night, which can cause significant psychological distress.