John Is 25 Years Old and Wishes to Retire in 30

question 38

Multiple Choice

John is 25 years old and wishes to retire in 30 years. His plan is to invest in a mutual fund earning a 12 percent annual return and have a $1 million retirement fund at age 55. How much must he invest at the end of each year to achieve this goal?

• A) $7,499.96
• B) $5,024.60
• C) $4,143.65
• D) $33,333.33

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Definitions:

Enteric Nervous System

Known as the "second brain," this extensive mesh-like system of neurons controls the function of the gastrointestinal system.

Digestive Tract

The series of hollow organs joined in a long, twisting tube from the mouth to the anus, where digestion of food occurs.

Presynaptic Terminals

The ends of axons where neurotransmitters are stored before being released across the synaptic cleft to transmit nerve impulses.

Axons

Long, threadlike extensions of a nerve cell that transmit electrical impulses away from the neuron's cell body.