Lucius Starts Saving $100 Per Month at Age 25 and Averages

question 56

Multiple Choice

Lucius starts saving $100 per month at age 25 and averages 6% per year compounded monthly.Hector starts saving $1,215.22 per month at age 55 and averages 6% per year compounded monthly.Who will be better off at age 65 assuming neither had in money in their account when they started?

• A)Lucius will have $15,476.20 and Hector will have $16,017.57 at age 65.
• B)Lucius will have $199,149.07 and Hector will have $163,879.34 at age 65.
• C)They both will have the same amount of money in their accounts at age 65.
• D)Not enough information available.

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Definitions:

Vertical Differentiation

Vertical differentiation refers to the way products or services vary in quality and price, allowing businesses to target different market segments based on consumers' willingness to pay.

Actual Society

Refers to the existing societal conditions at any given time, including its structures, norms, and dynamics.

Structural Functionalism

A sociological perspective focusing on how the various parts of a society are necessary for the survival of the society as a whole.

Conflict Theory

A perspective in sociology that emphasizes the social, political, or material inequality of a social group, critiquing the broad socio-political system.