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.

---

Definitions:

John Adams

The second President of the United States (1797-1801), known for his role in the American Revolution and as a Founding Father.

Election of 1800

The Election of 1800, also known as the Revolution of 1800, was a pivotal presidential election in the United States that led to Thomas Jefferson defeating incumbent President John Adams. It marked the first peaceful transfer of power between political parties in U.S. history.

Lewis and Clark Expedition

An early 19th-century expedition led by Meriwether Lewis and William Clark, commissioned by President Jefferson to explore the newly acquired western territory of the United States.

Written Records

Documents that preserve information or events in a written form, serving as a primary source for historical, legal, and administrative purposes.