Saul Is Currently 30 Years Old and He Plans to Retire

question 10

Essay

Saul is currently 30 years old and he plans to retire early,in 20 years' time.He would like to have an income of $60,000 per year during his retirement,which he anticipates will last for another 40 years.Assume that he receives the retirement income at the end of each of the 40 years.
Required:
Determine the amount of money he will need to have accumulated by the time he starts his retirement.Assume a discount rate of 5%.

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Definitions:

Conditional Response

A learned response to a previously neutral stimulus that becomes conditioned through association with an unconditioned stimulus.

Primary Reinforcer

A stimulus that satisfies a biological need, inherently reinforcing without prior learning.

Antecedent

An event, condition, or stimulus that precedes a behavior or response, often influencing or triggering it.

Extinction

In psychology, extinction is the process by which a conditioned response decreases or disappears after repeated presentations without the unconditioned stimulus.