How Much Can Be Accumulated for Retirement If $2,000 Is

question 39

Multiple Choice

How much can be accumulated for retirement if $2,000 is put aside at the end of each of the next 40 years? Assume that you can earn 9% a year on your savings.

• A) $87,200.00
• B) $675,764.89
• C) $736,583.73
• D) $802,876.27

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Definitions:

Another Company's Check

A form of payment issued by one company to another for goods or services rendered.

Electronic Funds Transfer

A system that allows the transfer of money between accounts via electronic signals, eliminating the need for physical checks.

Deposits In Transit

Funds that have been received and recorded by a business, but not yet processed or recorded by the bank.

Timing Difference

Differences between when transactions affect the book balances and bank balances, often seen in accounting reconciliations.