You Want to Have $2 Million in Real Dollars in an Account

question 110

Multiple Choice

You want to have $2 million in real dollars in an account when you retire in 35 years. The nominal return on your investment is 9.94 percent and the inflation rate is 3.2 percent. What is the real amount you must deposit each year to achieve your goal?

• A) $20,403
• B) $7,482
• C) $16,017
• D) $18,887
• E) $19,711

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Definitions:

HDC (Holder in Due Course)

A party possessing a negotiable instrument, like a check, who has taken it in good faith and for value, and thus has certain protections.

Negotiable Instrument

A legal document guaranteeing the payment of a specific amount of money, either on demand or at a set time, with the transferable right to receive the payment.

Thief

An individual who steals property belonging to another, with the intent to permanently deprive the owner of it.

Impliedly Promises

refers to commitments or guarantees that are not explicitly stated but are inferred from actions, circumstances, or the nature of an agreement.