If Your Parents Put $2,000 a Year into an IRA

question 90

Multiple Choice

If your parents put $2,000 a year into an IRA account for you in each of your last 4 teenage years (ages 16, 17, 18, and 19) , how much would the IRA account have in it at your retirement 45 years later if the account earned 12% each year? (Assume end-of-year payments.)

• A) $1,569,758
• B) $ 68,613
• C) $3,457,169
• D) $1,148,958

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Definitions:

Absolute Threshold

This pertains to the lowest level at which an organism can experience a sensation, marking the boundary between non-detection and detection of a stimulus.

Sensory Adaptation

The process by which sensory receptors become less sensitive to constant or repetitive stimuli over time.

Signal-Detection Theory

A means to quantify the ability to discern between information-bearing patterns and random patterns that distract from the information in the presence of uncertainty.

Just Noticeable Difference

The smallest change in intensity of a stimulus that can be detected by the sensory system.