You Just Graduated and Landed Your First Job in Your

question 140

Multiple Choice

You just graduated and landed your first job in your new career.You remember that your favorite finance professor told you to begin the painless job of saving for retirement as soon as possible,so you decided to put away $2,000 at the end of each year in a Roth IRA.Your expected annual rate of return on the IRA is 7.5%.How much will you accumulate at retirement after 40 years of investing? (Note: this may assume that you are even retiring early.)

• A) $94,426
• B) $247,921
• C) $1,088,632
• D) $454,513

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Definitions:

Determinants

Factors or elements that bring about changes in a condition, behavior, or outcome, influencing or deciding its nature and direction.

Attraction

A force drawing people together, not limited to physical looks, but can also involve emotional, social, or psychological factors.

Reward Model

A theory or system that outlines how rewards (material or immaterial) are used to motivate behaviors in individuals or groups.

Pleasant Experience

A feeling or a situation that brings joy, satisfaction, or happiness.