Clara Is Setting Up a Retirement Fund,and She Plans on Depositing

question 29

Multiple Choice

Clara is setting up a retirement fund,and she plans on depositing $5,000 per year in an investment that will pay 7% annual interest.How long will it take her to reach her retirement goal of $69,082? (PV of $1,FV of $1,PVA of $1,and FVA of $1) (Use appropriate factor(s) from the tables provided.)

• A)13.816 years
• B)0.072 years
• C)10 years
• D)20 years
• E)5 years

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Definitions:

Government-wide Financial Statements

Financial statements that present the financial position and the changes in financial position of all governmental activities, business-type activities, and aggregated discretely presented component units of the government.

Depreciation

The systematic allocation of the cost of a tangible asset over its useful life, reflecting wear and tear or obsolescence.

Government-wide Financial Statements

Comprehensive reports that present the financial position and the results of operations of all the activities of a government, including both governmental and business-type activities.