You will be receiving $5,000 from your family as a graduation present. You have decided to save this money for your retirement. You plan to retire thirty-ﬁve years after graduating. How much
Additional money will you have at that time if you can earn an average of 8.5% on your investment
Instead of just 8%?
A) $12,971.49
B) $13,008.47
C) $13,123.93
D) $13,234.44
E) $13,309.85

Question

Quizplus · Accepted Answer

The correct answer is A.The difference in the amount of money you will have at retirement if you can earn an average of 8.5% on your investment instead of just 8% is $12,971.49. This is because the higher interest rate will result in your money compounding at a faster rate over time.

You Will Be Receiving $5,000 from Your Family as a Graduation