An engineer wants to contribute $5,000 per year to her retirement account out of her year-end bonus. However, she just got out of school and there are a lot of other things that need her attention. Suppose she starts contributing to the retirement account 10-years-post graduation, leaving her 25 years until retirement. The interest rate is 8%, compounded annually. How much money will she have in the account at retirement?
A. $622,910.
B. $365,530.
C. $568,432.
D. $315,250.

The correct option is (B) $365,530.

Explanation:

In this problem we need to determine the future value, i.e. the amount at the retirement age.

The formula to commute the future value is:

Here,

A = annual investment = $5,000

r = interest rate = 8%

n = number of periods = 25

The future value is:

Thus, the amount of money the engineer will have in the account at retirement is $365,530.

the correct answer is economics is a game without winners or losers.

unlike sports or games economic is a game without losers or winner rather it is a game where everyone wins. parties of business doing businesses exchange money with each other and hence exchange is done on the basis of goods. one party takes the goods and other sales it so there is winner on both sides. each party values more highly the good it gets than the good it gives up. both sides exchange only because both intend to increase their value. so there is no concept of lose or win.