Paul Is a College Student Who Has the Following Financial

question 12

Multiple Choice

Paul is a college student who has the following financial information.He would like your help in figuring his surplus for last year.

What is Paul's surplus?

• A)$2,650
• B)$2,200
• C)$1,250
• D)$1,000

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Definitions:

Retirement Fund

A financial arrangement designed to replace employment income upon retirement, commonly managed through savings or investment plans.

Retirement Goal

A financial target or savings plan aimed at ensuring financial security for an individual upon retirement.

Compounded Annually

This refers to the process where interest is calculated on the initial principal and also on the accumulated interest of previous periods of a deposit or loan.

Return

The gain or loss on an investment over a specified period, expressed as a percentage of the investment's initial cost.