You will be receiving $2,500 from your family as a graduation present. You have decided to save this money for your retirement. You plan to retire 40 years after graduation. How much additional
Money will you have at that time if you can earn an average of 12.5% on your investment instead of
Just 12%?
A) $45,370.08
B) $51,400.62
C) $53,018.97
D) $58,811.99
E) $64,367.48

Question

Quizplus · Accepted Answer

The correct answer is A because the difference in the amount of money earned at 12.5% and 12% over 40 years is $45,370.08.

You Will Be Receiving $2,500 from Your Family as a Graduation