You Are Saving for Retirement

question 14

Multiple Choice

You are saving for retirement.To live comfortably,you decide that you will need $2.5 million dollars by the time you are 65.If you assume you are able to do that,and will live 20 more years (until age 85) ,the amount you can withdraw in each of those years at an interest rate of 5% before your retirement fund is empty is closest to:

• A)$72,987
• B)$75,606
• C)$197,987
• D)$200,606

---

Definitions:

Episodic Buffer

A component of Baddeley's model of working memory that integrates information across the sensory, spatial, and temporal domains, serving as a bridge between working memory and long-term memory.

Working Memory

A mental system designed to retain information temporarily, functioning within a restricted capacity for the purpose of processing data.

Long-Term Memory

Long-term memory refers to the phase of memory capable of storing an almost unlimited amount of information indefinitely, ranging from minutes to a lifetime.

Chunking

A memory strategy that involves breaking down information into smaller, manageable units or groups to enhance comprehension and recall.