How Much Jim Can Accumulate in a Private Pension Fund

question 18

Multiple Choice

How much Jim can accumulate in a private pension fund over 20 years if the fund offers 5% interest compounded annually, and he can afford to deposit $2 000 at the end of every second year?

• A)$28 946
• B)$32 259
• C)$66 132
• D)$94 256
• E)$117 853

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Definitions:

SWOT Model

A strategic planning tool that identifies strengths, weaknesses, opportunities, and threats related to business competition or project planning.

Strengths

Positive attributes or qualities that an individual possesses, which contribute to their overall effectiveness or success.

Profitability

The ability of a business or activity to generate a profit or financial gain, indicating its financial health and success.

Confirmation Bias

The habit of understanding new data as validation of one's current convictions or propositions.