Suppose That Bob Delays Starting an IRA for the First

question 24

Multiple Choice

Suppose that Bob delays starting an IRA for the first 10 years he works but then makes $2,000 deposits at the end of each of the next 15 years. If the annual interest rate is 8%, compounded annually, and if he leaves the money in his account for 5 additional years, how much will be in his account at the end of the 30-year period? Round your answer to the nearest cent. ​

• A) $79,790.73
• B) $73,880.30
• C) $68,407.69
• D) $63,340.45
• E) $93,067.90

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Definitions:

Likert-Type Scale

A psychometric scale commonly involved in research that employs questionnaires, where respondents specify their level of agreement to statements.

Semantic Differential Scale

A scale anchored at opposite ends by opposing words such as “strong–weak” or “hot–cold.”

Freshman

A student in the first year of high school, college, or university education.

Ordinal

Pertains to a classification of data where the order of the values is significant, but the distance between values is not uniform.