Solve. -Looking Ahead to Retirement, You Sign Up for Automatic Savings

question 95

Multiple Choice

Solve.
-Looking ahead to retirement, you sign up for automatic savings in a fixed-income 401K plan that pays6.5% per year compounded annually. You plan to invest $2,500 at the end of each year for the next 10years. How much will your account have in it at the end of 10 years?

• A)$33,736
• B)$35,506
• C)$32,193
• D)$35,034

Formulate linear programming (LP) constraints from worded problems.

Explain the relationship between constraints and the feasible region in a linear programming problem.

Identify and describe methods for conducting sensitivity analysis.

Understand the significance of corner points in solving linear programming problems.

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Definitions:

Antilapse Clause

A provision in a will or estate plan designed to determine what happens to a beneficiary's gift if the beneficiary predeceases the testator.

Life Insurance Policy

A contract between an individual and an insurer, where the insurer agrees to pay a designated beneficiary a sum of money upon the death of the policyholder.

Premium

In insurance law, the price paid by the insured for insurance protection for a specified period of time.

Fire Insurance Policy

A contract that provides compensation for damage or loss caused by fire to properties, subject to terms and conditions of the policy.