You Are Currently 25 and Would Like to Retire at Age

question 28

Multiple Choice

You are currently 25 and would like to retire at age 45. You plan to save by making equal investments of $10,000 at the end of each year for the next 20 years. If you are able to earn 8% per year on your investments, how much will you have at the end of the 20 years? Please refer to the table below:

• A)$216,000
• B)$200,000
• C)$457,600
• D)$576,900

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Definitions:

Equal Income

A hypothetical or policy-driven scenario where all individuals or households receive the same amount of income.

Transitory Income

Income that is temporary or not consistent, such as bonuses, gifts, or any other earnings that are not regular or guaranteed.

Absolute Level

A specific, fixed point or quantity that is not relative or compared to any other point or quantity.

Federal Government

The national government of a federated state, which shares powers with subnational governments under a system of federalism.