Mr Hopper Is Expected to Retire in 25 Years and He

question 74

Multiple Choice

Mr. Hopper is expected to retire in 25 years and he wishes accumulate $750,000 in his retirement fund by that time. If the interest rate is 10% per year, how much should Mr. Hopper put into the retirement fund each year in order to achieve this goal? [Assume that the payments are made at the end of each year]

• A) $4,559.44
• B) $2,500
• C) $7,626.05
• D) None of the above

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Definitions:

Consumer Sovereignty

The principle that consumers' preferences and choices dictate the production of goods and services in a market.

McSalad Shaker

A product line by McDonald's offering salads in a container designed for easy mixing of ingredients by shaking.

McDonald's

A global fast-food company recognized for its burgers, fries, and breakfast items, known as a pioneer in the quick service restaurant industry.

Donald Boudreaux

An American economist, author, and professor known for his work on free market economics.