Which of the Following Choices Will Result in a Greater

question 60

Multiple Choice

Which of the following choices will result in a greater future value at age 65? Choice number 1 is to invest $3,000 per year from ages 20 through 26 (a total of seven investments) into an account and then leave it untouched until you are 65 (another 39 years) .Choice number 2 is to begin at age 27 and make $3,000 deposits into an investment account every year until you are 65 years old (a total of 39 investments) .Each account earns an average of 10% per year.(The investments are end-of-year payments.)

• A)Choice 1 is better than choice 2 because it has a FV of $1,304,146.89,which is greater than choice 2 FV of $1,204,343.33.
• B)Choice 2 is better than choice 1 because it has a FV of $1,304,146.89,which is greater than choice 1 FV of $1,204,343.33.
• C)Choice 2 is better than choice 1 because it has a FV of $1,204,343.33,which is greater than choice 1 FV of $1,171,042.63.
• D)Choice 1 is better than choice 2 because it has a FV of $1,288,146.89,which is greater than choice 2 FV of $1,204,343.33.

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Definitions:

Personality Traits

Enduring characteristics or dispositions that influence behavior across situations, such as openness, conscientiousness, extraversion, agreeableness, and neuroticism.

Behavior Patterns

Repeated sequences of actions that are characteristic to an individual or group.

Self-Concept

Self-concept is an individual's understanding of themselves, encompassing beliefs, feelings, and perceptions about their identity and personal attributes.

Self-Esteem

An individual's subjective evaluation of their own worth and capabilities.