You want to have $2,500,000 when you retire and you are in a defined contribution plan. You can earn 8.5 percent per year on the money invested and you will retire in 40 years. Your employer also contributes to your plan. The employer will match 50 percent of what you put into the plan each year. How much do you have to contribute per year to meet your goal?

Select one:

a.

$5,637

b.

$4,829

c.

$8,345

d.

$6,529

e.

$7,372

The problem of adverse selection

Select one:

a.

is mitigated by deductibles

b.

means that those people who apply for insurance are most likely to need the insurance coverage

c.

implies that many people who do not need insurance coverage have it through group plans

d.

means that the insured is more likely to protect property than uninsured