Solve the Problem. -To Save for Retirement, Sue Decides to Deposit $1750 into Deposit

question 32

Multiple Choice

Solve the problem.
-To save for retirement, Sue decides to deposit $1750 into an IRA at the end of each year for the next 40 years. If the interest rate is 7% per year compounded annually, find the value of the IRA after 40 years. (Round to the
Nearest dollar.)

• A) $349,361
• B) $24,455
• C) $5,388,611
• D) $324,871

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Definitions:

Physical Needs

Basic requirements necessary for physiological well-being, such as food, water, shelter, and sleep.

Tension

A mental or emotional strain caused by challenging or demanding circumstances.

Homeostasis

The process by which living organisms maintain a stable internal environment despite changes in the external environment.

Arousal

A physiological and psychological state of being awoken or stimulated to action or response.