Al Corbin Is 25 Years Old Today and Wishes to Accumulate

question 41

Multiple Choice

Al Corbin is 25 years old today and wishes to accumulate enough money over the next 35 years to provide for a 20-year retirement annuity of $100,000 at the beginning of each year, starting with his 60th birthday. He can save $2,000 at the end of each of the next 10 years and $3,000 each year for the following 10 years. How much must he save each year at the end of years 21 through 35 to obtain his goal? Assume that the average rate of return over the entire period will be 10%.

• A) $9,642
• B) $26,969
• C) $12,321
• D) $24,289

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Definitions:

Addiction

A compulsive need for and use of a habit-forming substance or activity deemed harmful.

Dual Diagnosis

Refers to the co-occurrence of substance abuse problems and mental health disorders in an individual.

Anxiety Disorder

A mental health condition characterized by significant and persistent worry, anxiety, or fear, which can interfere with daily activities.

Personality Disorder

A type of mental disorder characterized by enduring maladaptive patterns of behavior, cognition, and inner experience, exhibited across many contexts.