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:

Bleeding

The loss of blood from the circulatory system due to injury or illness.

Premenstrual Syndrome

A group of symptoms that women may experience typically 1-2 weeks before their menstrual period, including mood swings, tender breasts, food cravings, fatigue, irritability, and depression.

Disrupting Effect

An impact that significantly alters the usual function or process of something.

Premenstrual Disorder

A term likely meant to refer to premenstrual syndrome (PMS) or premenstrual dysphoric disorder (PMDD), conditions characterized by emotional and physical symptoms that occur in the one to two weeks before a woman's period.