Don Wants to Have $50,000 Available in 10 Years for Retirement

question 77

Multiple Choice

Don wants to have $50,000 available in 10 years for retirement living expenses and health care. If he earns an average of 8% on his investments, what amount must he invest each year?

• A) $3,451
• B) $5,000
• C) $4,372
• D) $4,003

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Definitions:

Problem Recognition

The initial step in the decision-making process where individuals realize the difference between their current state and a desired state.

Satisficing Solution

A decision-making strategy that aims for a solution that is good enough, rather than optimal, based on the available information and resources.

Herbert Simon

An economist, political scientist, and cognitive psychologist who made significant contributions to the fields of artificial intelligence, economics, and cognitive psychology, and who was awarded the Nobel Prize in Economics in 1978.

Comprehensive

Inclusive, covering completely or broadly, often describing an extensive or thorough approach or assessment.