Angela Expects to Save $4,000 a Year and Earn an Average

question 4

Multiple Choice

Angela expects to save $4,000 a year and earn an average annual return of 7.5 percent.How much will her savings be worth 25 years from now?

• A)$259,317.82
• B)$260,702.57
• C)$271,911.45
• D)$274,868.92
• E)$286,063.66

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Definitions:

Actuarial Records

Data records used by actuaries to calculate insurance risks and premiums, including statistics on mortality, sickness, and disability.

Measures

Quantifiable indicators or metrics used to assess, evaluate, or quantify a particular attribute or outcome in research.

Physical Erosion

The process by which soil, rock, or other surface material is worn away through the action of wind, water, or ice.