You Have Just Made Your First $5,000 Contribution to Your

question 45

Multiple Choice

You have just made your first $5,000 contribution to your individual retirement account.Assuming you earn a 5 percent rate of return and make no additional contributions,what will your account be worth when you retire in 35 years? What if you wait for 5 years before contributing?

• A)$26,335.37; $23,011.60
• B)$27,311.20; $29,803.04
• C)$27,311.20; $22,614.08
• D)$27,580.08; 21,609.71
• E)$31,241.90; $32,614.08

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Definitions:

Weighted Averaging

A mathematical technique where each component of an average has a corresponding weight that reflects its importance or frequency.

Final Impression

The lasting opinion or feeling one has about something or someone after all information or experiences are considered.

Cognitive Representations

Mental models or representations of the world, including beliefs, perceptions, and memories.

Schemata

Cognitive structures that help individuals organize and interpret information based on prior knowledge and experiences.