Approximately How Much Money Will You Accumulate in Your Retirement

question 11

Multiple Choice

Approximately how much money will you accumulate in your retirement account if you save $1,000 per year for 30 years and earn 6% on your investments?

• A) $72,468.
• B) $79,058.
• C) $86,380.
• D) $91,668.

---

Definitions:

Financial Risk

The possibility of losing money on an investment or business venture.

Risk-Averse

A characteristic describing individuals or entities that prefer to avoid risks and favor more certain outcomes.

Marginal Utility

The additional satisfaction or utility that a consumer derives from consuming one more unit of a good or service.

Income

Money that an individual or business receives in exchange for providing a good or service or through investing capital.