Solve the Problem. -To Save for Retirement, Sue Decides to Deposit $2000 into Deposit

question 180

Multiple Choice

Solve the problem.
-To save for retirement, Sue decides to deposit $2000 into an IRA at the end of each year for the next 30 years. If the interest rate is 5% per year compounded annually, find the value of the IRA after 30 years. (Round to the
Nearest dollar.)

• A)$124,645
• B)$1,048,668
• C)$6644
• D)$132,878

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Definitions:

Household Budget

A budgeting strategy that distributes anticipated personal earnings into categories for spending, saving, and paying off debts.

Price Elasticity

An assessment of the sensitivity of the demand for an item to shifts in its cost.

Strawberry Ice Cream

A frozen dessert made from dairy ingredients such as milk and cream, sweetened and flavored with strawberries.

Price-elastic

A characteristic of a good or service indicating a high sensitivity to changes in its price, where a small price change leads to a significant change in quantity demanded or supplied.