Sydney saved $10,000 during her first year of work after college and plans to invest it for her retirement in 40 years. How much will she have available for retirement if she can make 8% on her investment? HINT: FVIF

Select one:

a. $596,250

b. $432,000

c. $345,100

d. $217,250

Question 19

Not yet answered

Marked out of 1.00

Flag question

Question text

Compounding monthly versus annually causes the interest rate to be effectively higher, and thus the future value:

Select one:

a. grows.

b. decreases.

c. is independent of the monthly compounding.

d. is affected only if the calculation involves an annuity due.

Question 20

Not yet answered

Marked out of 1.00

Flag question

Question text

Scenario A: At age 27, you invest $1,500 that earns 9 percent each year. Scenario B: At age 40, you invest $2,500 that earns 11 percent per year. Under which scenario do you accumulate more money by age 60?

Select one:

a. Scenario A

b. Scenario B

c. Both scenarios have the same value by age 60

d. Need more data to answer