Which One of the Following Is a True Statement About

question 12

Multiple Choice

Which one of the following is a true statement about retirement planning?

• A)I should wait until at least age 45 to start planning for retirement.
• B)My pension benefits will increase to keep pace with inflation.
• C)I should update my retirement plan periodically.
• D)My employer's health insurance plan will cover my medical expenses.
• E)Social Security will cover my basic living expenses.

---

Definitions:

GIC

An investment known as a Guaranteed Investment Certificate, which offers a risk-free fixed rate of return over a predetermined period.

Maturity Value

The total amount due or payable at the end of a loan or investment period, including the principal and any accrued interest.

Daily Interest

Interest calculation method where interest is calculated daily on the principal amount, either leading to faster growth in savings accounts or quicker payoff in loans.

Simple Interest

A method of calculating interest where the interest charge is computed only on the principal amount and not on the interest that has accumulated.