Find the Value of an Annuity

question 114

Multiple Choice

Find the Value of an Annuity
-To save for retirement, you decide to deposit $2250 into an IRA at the end of each year for the next 40 years. If the interest rate is 8% per year compounded annually, find the value of the IRA after 40 years.

• A) $582,877
• B) $46,630
• C) $537,618
• D) $13,779,108

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Definitions:

Ajzen

Refers to Icek Ajzen, a prominent psychologist known for his work on the Theory of Planned Behavior, which explains how attitudes, subjective norms, and perceived control over behavior influence intentions and actions.

Social Cognitive Theory

A framework for understanding, predicting, and changing human behavior that emphasizes the role of observational learning, social experiences, and reciprocal determinism in the development of personality.

Theory of Planned Behavior

A psychological theory that predicts human behavior on the basis of attitudes, subjective norms, and perceived control over the behavior.

Description

The act of providing details or characteristics of someone or something to give a clear picture.