You Just Graduated and Landed Your First Job in Your

question 148

Multiple Choice

You just graduated and landed your first job in your new career.You remember that your favorite finance professor told you to begin the painless job of saving for retirement as soon as possible,so you decided to put away $2,000 at the end of each year in a Roth IRA.Your expected annual rate of return on the IRA is 7.5%.How much will you accumulate at retirement after 40 years of investing (note: this may assume that you are even retiring early) ?

• A)$94,426
• B)$247,921
• C)$1,088,632
• D)$454,513

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Definitions:

Genetics

The branch of biology that deals with heredity and the variation of inherited characteristics among similar or related organisms.

Heredity

The transfer of physical or mental characteristics genetically from one generation to another.

Fraternal Twins

Twins that develop from two different eggs fertilized by two different sperm cells, resulting in siblings that are genetically distinct, similar to regular siblings.

IQ

IQ, or Intelligence Quotient, is a measure of a person's reasoning ability compared to the statistical norm or average for their age, taken as 100.