You Would Like to Have Enough Money Saved to Receive

question 47

Multiple Choice

You would like to have enough money saved to receive $80,000 per year perpetuity after retirement so that you and your family can lead a good life. How much would you need to save in your retirement fund to achieve this goal (assume that the perpetuity payments start one year from the date of your retirement. The interest rate is 8%) ?

• A) $7,500,000
• B) $750,000
• C) $1,000,000
• D) None of the above

Identify and explain the differences and similarities between the drive theory and incentive theory of motivation.

Recognize homeostatic motivations and their role in maintaining physiological balance.

Explain the concept of drive reduction and how it relates to motivated behavior.

Understand Maslow's hierarchy of needs and its criticisms.

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Definitions:

Common Stock

A type of equity security that represents ownership in a corporation, with voting rights and potential for dividends.

Dividends

Distributions made to shareholders by a company, often from its earnings.

Par Common Stock

The nominal or face value assigned to common stock shares in the charter of a corporation.

Cumulative Preferred Stock

A type of preferred stock where dividends accrue if not paid in a given year and must be paid out before any dividends can be distributed to common stockholders.