MsLloyd, Who Is 25 and Expects to Retire at Age

question 9

Multiple Choice

Ms.Lloyd, who is 25 and expects to retire at age 60, has just been hired by the Chambers Corporation.Ms.Lloyd's current salary is $30,000 per year, but her wages are expected to increase by 5 percent annually over the next 35 years.Chambers has a defined benefit pension plan in which workers receive 2 percent of their final year's wages for each year of employment.Assume a world of certainty.Further, assume that all payments occur at year-end.What is Ms.Lloyd's expected annual retirement benefit, rounded to the nearest thousands of dollars?

• A) $35,000
• B) $57,000
• C) $89,000
• D) $116,000
• E) $132,000

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Definitions:

Source Traits

Fundamental dimensions of personality identified through factor analysis that underlie and give rise to surface traits.

Cardinal

Principal or most important; in psychology, it may refer to cardinal traits that dominate an individual's personality.

Human Personality

The combination of characteristics or qualities that form an individual's distinctive character, influenced by genetic, environmental, and social factors.

Conscientiousness

A personality trait characterized by organization, dependability, discipline, and a strong sense of duty.