You Would Like to Have Enough Money Saved to Receive

question 71

Multiple Choice

You would like to have enough money saved to receive a growing annuity for 25 years, growing
At a rate of 4% per year, the first payment being $60,000 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 growing perpetuity payments start one year from the date of
Your retirement. The interest rate is 12%) ?

• A) $1,500,000
• B) $632,390
• C) $452,165
• D) None of the above

---

Definitions:

Acquiring Information

The process of obtaining data or knowledge from various sources to inform decisions, understand concepts, or learn new things.

Socialization

This is the process by which individuals learn and adopt the norms, values, behaviors, and social skills appropriate to their society or social group.

Proactive Behaviours

Actions taken by individuals that are anticipatory, change-oriented, and self-initiated in the workplace to bring about a positive impact.

Desire For Control

A personal inclination or preference towards being able to influence or direct one’s environment or the outcomes in it.