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

Understand the components and structure of the statement of cash flows.

Identify and differentiate between operating, investing, and financing activities.

Recognize the significance of noncash investing and financing activities.

Apply the direct and indirect methods for reporting cash flows from operating activities.

---

Definitions:

Variance

A statistical measure of the dispersion of a set of data points or portfolio returns, indicating how much the values differ from the average.

Indifference Curves

Graphical representations in economics to show different combinations of goods or services among which a consumer is indifferent.

Advanced Calculus

A branch of mathematics focusing on the study of rates of change (differential calculus) and the accumulation of quantities (integral calculus), often dealing with more complex concepts than those in introductory calculus.

Risk Tolerance

An investor's capacity to endure market volatility and the possibility of losing money on investments.