Kate Starts Saving for Retirement Today and Plans to Make

question 45

Multiple Choice

Kate starts saving for retirement today and plans to make annual contributions into this retirement account.Which one of these is most apt to increase the total amount she has saved on the day she retires? Assume she earns a positive rate of return each year.

• A)Retiring at age 62 rather than age 66
• B)Decreasing the investment's average rate of return
• C)Decreasing the amount she saves each year
• D)Delaying her retirement by 1 year
• E)Delaying any additions to her savings by 1 year

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Definitions:

Punitive Damages

Punitive damages are compensation awarded in addition to actual damages, intended to punish the defendant for egregious wrongdoing and deter similar future actions.

Negligence

A failure to exercise appropriate and/or ethical ruled care expected to be exercised amongst specified circumstances, leading to harm or damage.

Reasonable Person

A legal standard used to determine how an average person would responsibly act under similar circumstances.

Society Expect

The anticipations or beliefs regarding behavior, norms, or achievements considered standard or desirable by a community or group.