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:

Bartenders

Individuals who prepare and serve alcoholic and non-alcoholic beverages at bars, pubs, and other similar establishments, often engaging with customers.

Attributions

The process by which individuals explain the causes of behavior and events.

Behavior

How an individual or system reacts or acts when influenced by internal or external factors.

Judgments

Evaluations or decisions made based on evidence, facts, or personal opinion, often regarding the value or worth of something or someone.