Use the Information for the Question(s)below

question 46

Multiple Choice

Use the information for the question(s) below.
Assume that you are 30 years old today and that you are planning on retirement at age 65.Your current salary is $45,000 and you expect your salary to increase at a rate of 5% per year as long as you work.To save for your retirement,you plan on making annual contributions to a retirement account.Your first contribution will be made on your 31st birthday and will be 8% of this year's salary.Likewise,you expect to deposit 8% of your salary each year until you reach age 65.Assume that the rate of interest is 7%.
-The future value at retirement (age 65) of your savings is closest to:

• A)$497,530.
• B)$928,895.
• C)$1,263,236.
• D)$108,000.

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Definitions:

Stress

The body's response to any demand or challenge, which can be triggered by both positive and negative experiences and can affect mental and physical health.

Stress Response

A physical and psychological reaction to a demand or threat, involving release of stress hormones and activation of the sympathetic nervous system.

Metabolism

The set of life-sustaining chemical transformations within the cells of living organisms, involving the conversion of energy from food into cellular components and waste products.

Epinephrine Levels

The concentration of epinephrine, a hormone and neurotransmitter also known as adrenaline, in the bloodstream, affecting bodily responses to stress.