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:

Claustrophobia

An abnormal fear of being in enclosed or confined places.

Enclosed Places

Areas or environments that are surrounded by barriers such as walls or structures, limiting access and egress.

Enema

A procedure where liquid or gas is injected into the rectum, usually to expel its contents, but also to introduce drugs or permit X-ray imaging.

Colon

The large intestine.