Gretta Wants to Retire in 13 Years

question 59

Multiple Choice

Gretta wants to retire in 13 years. At that time she wants to be able to withdraw $12,500 at the end of each 6 months for 14 years. Assume that money can be deposited at 6% per year compounded semiannually. What
Exact amount will Gretta need in 13 years?

• A) $239,855.63
• B) $229,087.88
• C) $234,551.37
• D) $598,782.00

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Definitions:

Nonunion Workers

Employees who are not members of a labor union and do not have their employment terms negotiated collectively.

Union Density

The ratio of workers who are union members to the total number of workers in a given region or sector, indicative of the strength and reach of labor unions.

Labor Law

A body of laws, administrative rulings, and precedents which address the legal rights of, and restrictions on, working people and their organizations.

Efficiency

In an economic context, the optimal allocation and use of resources to achieve the best possible output or outcome with minimal waste.