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:

Positive Reinforcement

A concept in behavioral psychology where a behavior is encouraged by rewarding it, thereby increasing the likelihood of its recurrence.

Aversive Punishment

Aversive Punishment involves applying an unpleasant stimulus with the goal of decreasing or eliminating an undesirable behavior.

Negative Reinforcement

The strengthening of a behavior because it removes or decreases an unpleasant experience or outcome.

Aversive Punishment

A form of punishment that involves introducing an unpleasant or painful stimulus in order to reduce the likelihood of a behavior reoccurring.