Marvin Has Determined That He Can Save at Least $6

question 202

Multiple Choice

Marvin has determined that he can save at least $6 per day by quitting smoking and cutting out one cup of coffee or one can of pop per day. Therefore, he has decided to make contributions of $175 to his Retirement Savings Plan (RSP) at the end of each month for 35 years. He anticipates that his RSP will earn 13.2% compounded monthly. He is 20 years old now and therefore he will be only 55 when this plan is completed. How much money will be in his RSP when he is 55 years of age?

• A) Less than $500,000
• B) Between $500,000 and $1,000,000
• C) Between $1,000,000 and $1,500,000
• D) Between $1,500,000 and $2,000,000
• E) More than $2,000,000

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Definitions:

Demographic Data

Information collected about the characteristics of populations, such as age, sex, income level, and education, used for statistical analysis.

Old People

Individuals in the later stage of life, often considered to be of retirement age, who have accumulated a wealth of knowledge and experience.

Demographic Data

Statistical data relating to the population and particular groups within it, such as age, sex, income, and education.

Youngest Population

Refers to the portion of a population that is of the youngest age groups, often used in demographic analyses.