Katherina Is Currently 30 Years Old and Plans to Retire

question 46

Essay

Katherina is currently 30 years old and plans to retire later in life.She would like to have an income of $35,000 per year during her retirement,which she anticipates will last for another 25 years.Assume that she receives the retirement income at the end of each of the 25 years.
Required:
Determine the amount of money Katherina will need to have accumulated by the time she starts her retirement.Assume a discount rate of 5%.

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Definitions:

Positive Punishment

The presentation of a stimulus following a given behavior in order to decrease the frequency of that behavior.

Operant Conditioning

A method of learning that employs rewards and punishments for behavior. Through operant conditioning, an individual makes an association between a particular behavior and a consequence (either a reward or punishment).

Reprimanding

The act of expressing to someone that they have done something wrong, often in a stern or formal manner.

Rude

Exhibiting or having a discourteous or impolite demeanor or behavior, often characterized by a lack of respect for others.