You Would Like to Have Enough Money Saved to Receive

question 11

Multiple Choice

You would like to have enough money saved to receive a $50,000 per year perpetuity after retirement. How much would you need to have saved in your retirement fund to achieve this goal? (Assume that the perpetuity payments start on the day of your retirement. The annual interest rate is 8 percent.)

• A)$1,000,000
• B)$675,000
• C)$625,000
• D)$500,000

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Definitions:

Assigned Portion

A specified segment or piece of a broader task or project delegated to an individual or group.

Bloom's Taxonomy

A hierarchical classification of cognitive skills and learning objectives that educators use to design curriculum and assessments, starting from basic knowledge to advanced levels of critical thinking.

Study Group

A small assembly of students who meet regularly to discuss and work on a shared learning goal.

Dilemma

A situation in which a difficult choice has to be made between two or more alternatives, often equally undesirable.