Use the information for the question(s)below.
Assume that you are 30 years old today and that you are planning on retirement at age 65.Your current salary is $45,000 and you expect your salary to increase at a rate of 5% per year as long as you work.To save for your retirement,you plan on making annual contributions to a retirement account.Your first contribution will be made on your 31st birthday and will be 8% of this year's salary.Likewise,you expect to deposit 8% of your salary each year until you reach age 65.Assume that the rate of interest is 7%.
-If the appropriate interest rate is 8%,then present value of $500 paid at the end of each of the next 40 years is closest to:
A)$23.
B)$5962.
C)$6439.
D)$20,000.

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The Answer of Use the information for the question(s)below.
Assume that you are 30 years old today and that you are planning on retirement at age 65.Your current salary is $45,000 and you expect your salary to increase at a rate of 5% per year as long as you work.To save for your retirement,you plan on making annual contributions to a retirement account.Your first contribution will be made on your 31st birthday and will be 8% of this year's salary.Likewise,you expect to deposit 8% of your salary each year until you reach age 65.Assume that the rate of interest is 7%.
-If the appropriate interest rate is 8%,then present value of $500 paid at the end of each of the next 40 years is closest to:
A)$23.
B)$5962.
C)$6439.
D)$20,000.

Use the Information for the Question(s)below