document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1127583>Question 1127583</A>: <I><SPAN STYLE=\"word-break: break-all;\"> This is all retirement questions\r<BR>\n" );
document.write( "\n" );
document.write( "1. In the short term, which investment carries the most risk?<BR>\n" );
document.write( "	<BR>\n" );
document.write( "A. Stock in a small company<BR>\n" );
document.write( " 	<BR>\n" );
document.write( "B. Stock in a large company<BR>\n" );
document.write( " 	<BR>\n" );
document.write( "C. Government bond\r<BR>\n" );
document.write( "\n" );
document.write( "2. When saving money for retirement, which of the following should you do with your funds?<BR>\n" );
document.write( "	<BR>\n" );
document.write( "A. Collect them in a shoe box<BR>\n" );
document.write( " 	<BR>\n" );
document.write( "B. Deposit them in a checking account<BR>\n" );
document.write( " 	<BR>\n" );
document.write( "C. Invest them in a variety of securities\r<BR>\n" );
document.write( "\n" );
document.write( "3. Suppose Ray started saving for retirement at age 33 with plans to retire at age 68. He invested an average of $1,000 a month, with an average annual return of 5% adjusted for inflation. Assuming monthly compounding, estimate Ray's savings at the start of retirement using the future value formula: FVOA = C + (1+i)^(nt)-1)/i\r<BR>\n" );
document.write( "\n" );
document.write( "A. $607,547.80\r<BR>\n" );
document.write( "\n" );
document.write( "B. $1,005,398.63<BR>\n" );
document.write( " 	<BR>\n" );
document.write( "C. $1,136,092.43\r<BR>\n" );
document.write( "\n" );
document.write( "4. Which of the following is the name of the federally managed pension system in the United States?<BR>\n" );
document.write( "	<BR>\n" );
document.write( "A. FICA<BR>\n" );
document.write( " 	<BR>\n" );
document.write( "B. Individual Retirement Account<BR>\n" );
document.write( " 	<BR>\n" );
document.write( "C. Social Security\r<BR>\n" );
document.write( "\n" );
document.write( "5. Which investment vehicle usually has the highest rate of return?<BR>\n" );
document.write( "	<BR>\n" );
document.write( "A. Stock in a small company<BR>\n" );
document.write( " 	<BR>\n" );
document.write( "B. Stock in a large company<BR>\n" );
document.write( " 	<BR>\n" );
document.write( "C. Government bond\r<BR>\n" );
document.write( "\n" );
document.write( "6. When setting goals for retirement, which of the following should be considered?<BR>\n" );
document.write( "	<BR>\n" );
document.write( "A. Activities during retirement<BR>\n" );
document.write( " 	<BR>\n" );
document.write( "B. Age at start of retirement<BR>\n" );
document.write( " 	<BR>\n" );
document.write( "D. All of the above\r<BR>\n" );
document.write( "\n" );
document.write( "7. Which of the following groups of people best describes who funds the Social Security retirement benefits of today's retirees?<BR>\n" );
document.write( "	<BR>\n" );
document.write( "A. Today's workers<BR>\n" );
document.write( " 	<BR>\n" );
document.write( "B. Today's retirees<BR>\n" );
document.write( " 	<BR>\n" );
document.write( "C. U.S. government\r<BR>\n" );
document.write( "\n" );
document.write( "8. When should people start thinking about retirement plans?<BR>\n" );
document.write( "	<BR>\n" );
document.write( "A. As soon as possible<BR>\n" );
document.write( " 	<BR>\n" );
document.write( "B. By age 30<BR>\n" );
document.write( " 	<BR>\n" );
document.write( "C. By age 50\r<BR>\n" );
document.write( "\n" );
document.write( "9. Suppose Ray didn't start saving for retirement until age 43. With all other factors being the same ($1,000 annual deposit with an average annual return of 5% adjusted for inflation and compounded monthly until retiring at age 68), which of the following is the new estimate of his funds upon retirement?<BR>\n" );
document.write( "	<BR>\n" );
document.write( "A. $155,282.28<BR>\n" );
document.write( " 	<BR>\n" );
document.write( "B. $595,509.71<BR>\n" );
document.write( " 	<BR>\n" );
document.write( "C. $980,810.15\r<BR>\n" );
document.write( "\n" );
document.write( "10.Which breakdown of investments for retirement savings would a financial advisor most likely suggest for someone who is 30 years old?<BR>\n" );
document.write( "	<BR>\n" );
document.write( "A. 0% high-risk; 20% medium-risk; 80% low-risk<BR>\n" );
document.write( " 	<BR>\n" );
document.write( "B. 20% high-risk; 10% medium-risk; 70% low-risk<BR>\n" );
document.write( " 	<BR>\n" );
document.write( "D. 45% high-risk; 35% medium-risk; 20% low-risk\r<BR>\n" );
document.write( "\n" );
document.write( "If you can help please, I would greatly be pleased with it.  </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #743998 by </B><A HREF=/tutors/aboutme.mpl?userid=Boreal><B>Boreal(15235)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Boreal><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=Boreal><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=743998\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> Please resubmit with the math questions only.  We aren't financial planners.<BR>\n" );
document.write( "Q2 should be obvious.\r<BR>\n" );
document.write( "\n" );
document.write( "3. Problem is misstated; the formula is FVOA = C*(not plus) (1+i)^(nt)-1)/i ,<BR>\n" );
document.write( "n=12, t=35 and i is r/n, where r is the rate and n the number of compoundings per year.<BR>\n" );
document.write( "1+(.05/12)=1.0041666667 don't round until the end<BR>\n" );
document.write( "raise that to the 420 power and subtract 1.  That will be 4.73337 but keep all numbers.<BR>\n" );
document.write( "divide by (.05/12) and multiply by C or 1000.<BR>\n" );
document.write( "that will give $1,136,092.43 </SPAN>\n" );
document.write( "</TD></TR></TABLE>\n" );