Asked by Khush Bhullar on Jun 03, 2024
Verified
In planning for retirement, an investor decides she will save $3,000 every year for 25 years. At a 5.7% return on her investment, how much money will she have at the end of 25 years?
A) $119,015
B) $125,316
C) $157,805
D) $128,420
Return On Investment
A measure of the profitability and efficiency of investment, calculated by dividing net profit by the initial capital cost.
Retirement
The phase of life where one stops full-time work and often receives income from savings, investments, and pensions.
- Integrate the concept of time value of money into strategies for saving and investing for retirement.
- Comprehend the vital function yearly deposits play in determining the future worth of pension savings.
Verified Answer
ZK
Zybrea KnightJun 04, 2024
Final Answer :
C
Explanation :
Calculator entries are N = 25, I/Y = 5.7, PV = 0, PMT = −3,000, CPT FV → 157,804.93.
Learning Objectives
- Integrate the concept of time value of money into strategies for saving and investing for retirement.
- Comprehend the vital function yearly deposits play in determining the future worth of pension savings.
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