Use the Information for the Question(s)below

question 26

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 (FV) 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:

Manual Calculations

Manual Calculations involve performing mathematical operations by hand without the aid of software or automated tools, often for the purpose of verifying computational accuracy.

Factory Floor

The operational area of a manufacturing plant or facility where goods are produced or assembled.

R-chart

A type of control chart used in quality control processes to monitor the range of variability of a manufacturing process over time.

Uniformity

The consistency or homogeneity of a substance or distribution where all parts are identical or uniformly distributed.