Mr William Expects to Retire in 30 Years and Would

question 79

Multiple Choice

Mr. William expects to retire in 30 years and would like to accumulate $1 million in the pension fund. If the annual interest rate is 12% per year, how much should Mr. Williams put into the 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 and also use monthly compounding.

• A) $286.13
• B) $771.60
• C) $345.30
• D) None of the above

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Definitions:

Colostrum

The first form of milk produced by mammals immediately following delivery of the newborn, rich in antibodies and nutrition.

Kwashiorkor

A form of severe malnutrition or protein-energy malnutrition characterized by edema, irritability, anorexia, ulcerating dermatoses, and an enlarged liver.

Marasmus

A severe form of malnutrition caused by inadequate intake of protein and calories, characterized by wasting and stunted growth.

SIDS

Sudden Infant Death Syndrome, an unexplained death, usually during sleep, of a seemingly healthy baby less than a year old.