Assume That You Are 30 Years Old Today,and That You

question 61

Essay

Assume that you are 30 years old today,and that you are planning on retiring 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 31^st 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.At retirement (age 65)you will begin withdrawing equal annual payments to pay for your living expenses during retirement (on your 65th birthday).If you expect to die one day before your 101st birthday (Your last withdraw will be on your 100th birthday)and if the annual rate of return is 7%,then how much money will you have to spend in each of your golden years of retirement?

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Definitions:

Prestige

The respect and admiration that an individual or organization gains based on achievements, quality, or position.

California Q-Set

An assessment tool used in psychology to measure personality traits, attitudes, and behaviors through the ranking of descriptive items.

Quantitative Factor Analysis

A statistical method used to describe variability among observed, correlated variables in terms of fewer unobserved variables, called factors.

Allport

Gordon Allport, a pioneering psychologist known for his theory on personality traits and the concept of the "proprium" as the core of an individual's sense of self.