A Recent College Graduate Begins a Savings Plan at Age

question 84

Multiple Choice

A recent college graduate begins a savings plan at age 27 by investing $500 at the end of each month in an account that earns an annual rate of 8.1%, compounded monthly. Suppose this plan is followed for 10 years, and that sufficient equal monthly contributions are made for the next 28 years in order to be able to withdraw $10,000 at the end of each month from the account for the next 25 years. What is the total amount withdrawn? Round your answer to the nearest dollar. ​

• A)$3,020,250
• B)$3,000,000
• C)$2,979,750
• D)$6,020,250
• E)$9,020,250

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Definitions:

Values

Fundamental beliefs or ideals that serve as guiding principles for behavior and decision-making.

Result-Oriented Vision

A strategic approach focusing on achieving specific outcomes and goals.

Appreciative Inquiry

A collaborative and strengths-based approach to organizational change that focuses on exploring and amplifying positive potential.

Higher Purpose

A broader, often altruistic goal that transcends personal gain, motivating individuals or organizations towards social contribution or meaningful achievements.