You Made Your First $3,000 Deposit Today into a Retirement

question 34

Essay

You made your first $3,000 deposit today into a retirement account earning an average annual rate of 6%.How long will it take your deposit to reach a value of $50,000? How long will it take if instead you invest the money into an account earning 10% per year? After making your calculations,how does this information affect your decision-making regarding long-term investments?

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Definitions:

Emotional Support

Assistance provided by acting through empathy, concern, encouragement, and caring to help someone cope with their emotional or psychological struggles.

Hawthorne Studies

A series of studies conducted in the early 20th century that explored the effects of the work environment on employee productivity and morale.

Self-Awareness

The conscious knowledge of one’s own character, feelings, motives, and desires, being aware of oneself as an individual.

Influences Other People

The capacity or ability to affect others' thoughts, actions, or decisions through various means, such as persuasion, example, or authority.