You Would Like to Have Enough Money Saved After Your

question 49

Multiple Choice

You would like to have enough money saved after your retirement such that you and your heirs can receive $100,000 per year in perpetuity.How much would you need to have saved at the time of your retirement in order to achieve this goal? (Assume that the perpetuity payments start one year after the date of your retirement.The annual interest rate is 12.5%.)

• A)$1,000,000
• B)$10,000,000
• C)$800,000
• D)$1,125,000

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Definitions:

Contiguity

A principle in psychology and learning theory that suggests that events experienced close together in time or space are likely to be associated with each other.

Contrapreparedness

An inability to associate a specific conditioned stimulus (CS) and a specific unconditioned stimulus (UCS) despite repeated conditioning experiences

Predictable Stimulus

A stimulus that occurs in a manner or pattern that can be anticipated, allowing organisms to anticipate and react accordingly.

Stimulus Substitution

A theory in classical conditioning suggesting that the conditioned stimulus acts as a substitute for the unconditioned stimulus, eliciting the same response.