You Are Depositing $1,500 in a Retirement Account Today and Expect

question 62

Multiple Choice

You are depositing $1,500 in a retirement account today and expect to earn an average return of 7.5 percent on this money.How much additional income will you earn if you leave the money invested for 45 years instead of just 40 years?

• A)$10,723.08
• B)$11,790.90
• C)$12,441.56
• D)$12,908.19
• E)$13,590.93

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Definitions:

Inventory Turnover

A ratio showing how often a company's inventory is sold and replaced over a specific period, indicating the efficiency of inventory management.

Times Interest

A financial ratio that measures a company's ability to meet its interest obligations.

Acid-test Ratio

A financial ratio indicating a firm's capacity to settle its short-term obligations without selling its stock.

Current Ratio

A financial metric assessing a firm's capability to cover its short-term debts using its short-term assets, determined by dividing current assets by current liabilities.