In the US, Employees in What Age Group Value Wealth and Strive

question 73

Multiple Choice

In the U.S., employees in what age group value wealth and strive to become rich?

• A) 20s
• B) 30s
• C) 40s
• D) 50s
• E) 60s

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Definitions:

Present Value Index

A ratio used in capital budgeting to evaluate the profitability of investments by comparing the present value of future cash flows to the initial investment cost.

Compound Interest

Interest that is computed on both the initial amount of the deposit or loan and on the interest that has been added to that principal over past periods.

Desired Rate of Return

The minimum percentage return an investor expects to achieve by investing in a particular asset.

Present Value

The value today of a sum of money or cash flows expected in the future, discounted at a particular rate of return.