If an individual or family began at age 25 paying funds into a tax-free investment account or pension earning a 7 percent real return, how much would they have to save annually in order for the funds to be worth a million dollars (measured in the purchasing power of today's dollar) when they reach age 65?
a. approximately $5,000 annually
b. approximately $10,000 annually
c. approximately $20,000 annually
d. approximately $50,000 annually
A
You might also like to view...
Since 1980, discount loans have been available
A) only to member banks of the Federal Reserve System. B) only to national banks. C) only to state banks. D) to all depository institutions.
If the quantity of money supplied exceeds the quantity of money demanded, at a point in time: a. the price level in the economy will fall
b. the equilibrium interest rate will fall. c. the equilibrium interest rate will fall. d. the money demand curve will shift to the right. e. the money demand curve will shift to the left.
Between 1981and 2003, government spending as a percentage of GDP
a. remained fairly constant at approximately 10 percent b. remained fairly constant at approximately 33 percent c. decreased from approximately 30 percent to 15 percent d. increased from approximately 15 percent to 30 percent e. increased from approximately 30 percent to 65 percent
Under a system of flexible exchange rates, in the long run, a nation's balance on current account and capital account transactions will
a. increase continuously. b. decrease continuously. c. tend to net out to zero, indicating a balance between the debits and credits. d. tend to increase if the nation is running a balance of trade surplus and decrease if it is running a balance of trade deficit.