Rakesh earns Rs.50,000 a month as an engineer. Each month he does the following: He puts Rs.6250 in a retirement account.He puts Rs. 2500 in a savings account for a vacation.He spends Rs.25000 on rent, food, and billsHe pays a Rs.3750 month towards his student loan debt.Where does the Rs.6250 he puts in the retirement account go in his plan?a. Budgetb. Debt repayment Planc. Investment Pland. Savings Plan.
Question
Rakesh earns Rs.50,000 a month as an engineer. Each month he does the following: He puts Rs.6250 in a retirement account.He puts Rs. 2500 in a savings account for a vacation.He spends Rs.25000 on rent, food, and billsHe pays a Rs.3750 month towards his student loan debt.Where does the Rs.6250 he puts in the retirement account go in his plan?a. Budgetb. Debt repayment Planc. Investment Pland. Savings Plan.
Solution
The Rs.6250 that Rakesh puts in the retirement account goes into his Investment Plan. This is because retirement accounts are typically investment vehicles that help individuals grow their wealth over time for use in their retirement years.
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