Suppose That Immediately After Graduation You Invested $3,000 Each Year

question 23

Multiple Choice

Suppose that immediately after graduation you invested $3,000 each year for 15 years and nothing thereafter.You earn 10% on this money.Which of the following is closest to the amount of money you would you have on deposit when you retired in 40 years (25 years after the deposits stopped) ?

• A)$47,812
• B)$523,482
• C)$834,295
• D)$1,032,736

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Definitions:

Dimensions

Aspects or features that can be measured or used to define the characteristics of something.

Preferred Solution

The most favored or desirable resolution to a problem or issue among several alternatives.

Escalation of Commitment

A decision-making error in which individuals or organizations continue a course of action despite facing negative outcomes or feedback.

Preferences

Individual choices or inclinations regarding various options, based on personal likes, dislikes, values, or interests.