You Want to Have $1 Million in Your Savings Account

question 8

Multiple Choice

You want to have $1 million in your savings account when you retire.You plan on investing a single lump sum today to fund this goal.You are planning on investing in an account which will pay 7.5 percent annual interest.Which of the following will reduce the amount that you must deposit today if you are to have your desired $1 million on the day you retire?
I.Invest in a different account paying a higher rate of interest.
II.Invest in a different account paying a lower rate of interest.
III.Retire later.
IV.Retire sooner.

• A)I only
• B)II only
• C)I and III only
• D)I and IV only
• E)II and III only

Understand the different types of poverty and their causes.

Recognize how social class affects individuals' lifestyle and access to resources.

Analyze the impact of social stratification on society.

Evaluate the governmental and non-governmental measures to address poverty.

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Definitions:

First-In, First-Out

An inventory valuation method that assumes goods are sold in the order they are acquired, with the cost of the oldest products being used to calculate cost of goods sold first.

Conversion

The process of changing assets, investments, or data from one form to another, often referring to the conversion of currencies or converting raw materials into finished goods.

Equivalent Units Of Production

The number of production units that could have been completed within a given accounting period, given the resources consumed.

First-In, First-Out

An inventory accounting method where goods first purchased or manufactured are the first ones to be sold.