Solve the Problem. -Looking Ahead to Retirement, You Sign Up for Automatic Savings

question 79

Multiple Choice

Solve the problem.
-Looking ahead to retirement, you sign up for automatic savings in a fixed-income 401K plan that pays 6.5% per year compounded annually. You plan to invest $2000 at the end of each year for the next 20 years. How much will your account have in it at the end of 20 years? Round to the nearest dollar.

• A)$78,949
• B)$76,108
• C)$79,421
• D)$77,651

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Definitions:

Rain Shadow Effect

A climatological phenomenon where one side of a high mountain range receives significant rainfall, while the other side remains dry and desert-like.

Large Cities

Urban areas characterized by high population density and significant infrastructure, offering a wide range of services and resources.

Desert's Perimeter

The boundary or edge of a desert, often characterized by a gradual transition into different ecosystems.

Cold Front

A leading edge of a cooler mass of air, replacing at ground level a warmer mass of air, which can lead to dramatic changes in the weather.