Alex Goh Is 39 Years Old and Has Accumulated $128,000

question 78

Multiple Choice

Alex Goh is 39 years old and has accumulated $128,000 in his self-directed defined contribution pension plan. Each year he contributes $2,500 to the plan and his employer contributes an equal amount. Alex thinks he will retire at age 62 and figures he will live to age 86. The plan allows for two types of investments. One offers a 4% risk-free real rate of return. The other offers an expected return of 11% and has a standard deviation of 37%. Alex now has 25% of his money in the risk-free investment and 75% in the risky investment. He plans to continue saving at the same rate and keep the same proportions invested in each of the investments. His salary will grow at the same rate as inflation.
-How much can Alex be sure of having in the safe account at retirement?

• A)$132,473
• B)$162,557
• C)$178,943
• D)$189,211
• E)$124,643

Differentiate between nonmaterial culture and symbolic culture.

Describe the concepts of positive and negative sanctions.

Explain the Sapir-Whorf hypothesis and its perspective on the role of language in social life.

Identify how mainstream values can change over time.

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Definitions:

Brokerage House

A financial institution that buys and sells securities, such as stocks and bonds, on behalf of clients while charging a commission for the service.

Joint Checking Account

A bank account shared by two or more individuals, typically allowing all holders equal access to funds.

Overdraft

A check written on a checking account in which there are insufficient funds to cover the amount of the check.

Joint-Account Owner

An individual who shares ownership and control over a bank account with one or more persons.