You Want to Save an Equal Amount Each Year for the Next

question 108

Multiple Choice

You want to save an equal amount each year for the next 38 years,at which time you will retire.What amount of annual savings are needed if you desire a retirement income of $55,000 a year for 25 years and earn 7.5 percent,compounded annually?

• A)$3,333.33
• B)$2,640.85
• C)$3,146.32
• D)$2,889.04
• E)$3,406.16

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Definitions:

Early Interest

Initial curiosity or attention towards a particular subject or activity that could develop into a more profound involvement or expertise.

Locus of Control

A psychological concept that categorizes individuals by their belief in personal control over life events, either as internal (self-control) or external (controlled by outside factors).

Studied Variables

Elements or factors that are measured or manipulated within research to explore their effects on outcomes of interest.

Reinforcement

In psychology, it refers to a consequence that will strengthen an organism's future behavior whenever that behavior is preceded by a specific antecedent stimulus.