Ideally,retirement Planning Should Begin

question 53

Multiple Choice

Ideally,retirement planning should begin

• A)during the year before retirement.
• B)when the last child has left home.
• C)as soon as the mortgage is paid off.
• D)when you get married.
• E)none of these.

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Definitions:

Compound Interest

Interest on both the initial principal and the accumulated interest from previous periods on a deposit or loan.

Future Value

The worth of an asset or cash at a specified date in the future that is equivalent in value to a specified sum today.

Compounded Quarterly

Referring to interest that is calculated and added to the principal amount at the end of each quarter, leading to exponential growth.

Interest Charge

The cost of borrowing money on a loan or earned on interest-bearing accounts, calculated as a percentage of the principal sum.