The Solution to This Problem Requires Time Value of Money

question 126

Multiple Choice

The solution to this problem requires time value of money calculations.Reference to Tables 9-1 through 9-4 in the text is necessary to complete the calculations.
-
David,a high school math teacher,wants to set up an IRA account into which he will deposit $2,000 per year.He plans to teach for 20 more years and then retire.If the interest on his account is 7% compounded annually,how much will be in his account when he retires?

• A)$4,800
• B)$21,118
• C)$74,458
• D)$81,990

---

Definitions:

Expressive Traits

Characteristics or behaviors typically associated with emotional expression, empathy, and nurturing, often culturally attributed more to women than men.

Talcott Parsons

An influential American sociologist known for his development of a general theory for the study of society called action theory.

Social Constructionism

A theory in sociology and philosophy which suggests that much of what we perceive as reality is shaped by social interactions and constructed through cultural and societal norms.

Gender Differences

Variabilities in behaviors, traits, and societal roles associated with being male or female.