Mr Williams Expects to Retire in 30 Years and Would

question 19

Multiple Choice

Mr. Williams expects to retire in 30 years and would like to accumulate $1 million in his pension fund. If the annual interest rate is 12 percent, how much should Mr. Williams put into his pension fund each month in order to achieve his goal? (Assume that Mr. Williams will deposit the same amount each month into his pension fund, using monthly compounding.)

• A)$286.13
• B)$771.60
• C)$345.30
• D)$437.13

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Definitions:

Internal Control

Mechanisms implemented by a business to ensure the integrity of financial and accounting information and compliance with laws and regulations.

Control Procedures

Actions and activities that are implemented to prevent, detect, and correct inaccuracies and fraud in the financial statements.

Business Goals

Objectives that a company aims to achieve over a specific period of time.

Compliance

Adhering to laws, regulations, standards, and ethical practices that are relevant to an organization’s operations and industry.