When You Retire 45 Years from Now, You Want to Have

question 5

Multiple Choice

When you retire 45 years from now, you want to have $1.25 million saved. You think you can earn an average of 7.6 percent on your investments. To meet your goal, you are trying to decide whether to deposit a lump sum today, or to wait and deposit a lump sum five years from today to fund this goal. How much more will you have to deposit if you wait for five years before making the deposit?

• A) $17,414.14
• B) $21,319.47
• C) $19,891.11
• D) $20,468.85
• E) $13,406.78

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Definitions:

Flexor Digitorum Profundus

A deep muscle in the forearm that flexes the fingers, enabling gripping and manipulation of objects.

Extensor Carpi Radialis Longus

A muscle in the forearm that extends the wrist and aids in its abduction.

Tibialis Anterior

A muscle in the front part of the lower leg that is involved in dorsiflexion and inversion of the foot.

Gastrocnemius

A major muscle located in the back part of the lower leg, contributing to plantar flexion of the foot.