Use the Information for the Question(s)below

question 42

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 present value (at age 30) of your retirement savings is closest to:

• A)$87,000.
• B)$108,000.
• C)$46,600.
• D)$75,230.

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Definitions:

Buyer Behavior

The study of how individuals or groups select, purchase, use, or dispose of goods, services, ideas, or experiences to satisfy their needs and desires.

Marketing Management

The process of planning, executing, and overseeing marketing strategies and tactics to attract, engage, and retain customers.

Attracting Customers

The strategies and tactics businesses use to draw potential buyers towards their products or services.

Existing One

This term does not seem to have a clear definition in a professional or business context and might not be a standard key term.