Jim Luster Wants to Have Saved Enough Money by the Time

question 128

Multiple Choice

Jim Luster wants to have saved enough money by the time he is 65 to invest it and earn a $60,000 annual income for the rest of his life. He wants to be able to leave that same amount to his heirs, no matter how long he lives. If he can earn 8% on invested money, how much does he need to have accumulated by the time he is 65?

• A)$480,000
• B)$600,000
• C)$750,000
• D)$900,000
• E)Cannot be determined based on the information given.

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Definitions:

Sensorimotor Stage

The first stage in Piaget's theory of cognitive development, spanning from birth to about 2 years old, where infants learn about the world through their senses and motor activities.

Cognitive Development

the construction of thought processes, including recalling, problem-solving, and decision-making, from childhood through adulthood.

Low-SES Families

Refers to families with low socioeconomic status, characterized by limited income, education, and occupational prestige.

Daily Stimulation

Regular exposure to activities or environments that engage and challenge the senses or mind, contributing to development and well-being.