You Would Like to Have Enough Money Saved to Receive

question 75

Multiple Choice

You would like to have enough money saved to receive an $80,000 per year perpetuity after retirement so that you and your family can lead a good life. How much would you need to save in your retirement fund to achieve this goal (assume that the perpetuity payments starts on the day of retirement. The interest rate is 10%) ?

• A) $1,500,000
• B) $880,000
• C) $800,000
• D) None of the above

---

Definitions:

Applied Research

focuses on applying existing scientific knowledge to solve practical problems and develop new technologies or techniques.

Business R&D

Research and Development (R&D) activities undertaken by businesses to innovate and develop new products, services, or processes.

Innovation

The introduction of new ideas, products, or methods, often leading to enhancements in efficiency, productivity, or quality.

Basic Research

Research conducted to increase fundamental knowledge and understanding, without specific applications in mind.