Ian Would Like to Save $2,000,000 by the Time He

question 23

Multiple Choice

Ian would like to save $2,000,000 by the time he retires in 40 years. If he believes that he can achieve a 7% rate of return, how much does he need to deposit each year to achieve his goal?

• A) $12,065
• B) $37,500
• C) $5,790
• D) $10,018

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Definitions:

Retention

The ability to keep or hold information in memory over a period of time.

Distributed Practice

A learning strategy that involves spreading study sessions out over time rather than cramming them into a short period.

Recognition

The cognitive process of identifying and acknowledging something previously seen, heard, or experienced.

Retention

the ability to store and recall information or experiences over time.