Sam Received a Lump Sum of $135 000 as an Inheritance

question 91

Multiple Choice

Sam received a lump sum of $135 000 as an inheritance from his great grandmother. He plans to invest them for 20 years in a long-term investment fund with an expected rate of return of 9% compounded monthly. After 20 years, what payment can he withdraw at the beginning of each month for 10 years?

• A) $10 200
• B) $7245
• C) $2955
• D) $4161
• E) $66 985

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Definitions:

HR Apps

Software applications designed to manage and optimize the human resource needs of an organization.

Talent Management

The systematic attraction, identification, development, engagement, retention, and deployment of those individuals who are of particular value to an organization.

Benefits Administration

The process of managing and overseeing employee benefits programs, such as health insurance, retirement plans, and leave policies.

ESS and MSS Applications

Employee Self-Service and Manager Self-Service applications that enable employees and managers to access and manage their HR-related information directly.