Kate Starts Saving for Retirement Today and Plans to Make

question 42

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:

Outstanding Voting Shares

The total shares of a company that are held by shareholders and carry rights to vote on company matters.

De Facto Control

A situation where control over an entity is held through means other than formal share ownership.

Strategic Operating

Refers to the planned and tactical execution of a company's operational activities aligned with its overall strategic goals.

Business Operations

The activities and tasks companies engage in on a daily basis to increase value for the business and its stakeholders, encompassing production, sales, and administration.