Moses' Goal, When He Retires from Work in Seven Years

question 160

Multiple Choice

Moses' goal, when he retires from work in seven years, is to have $400,000 in his Retirement Fund. Assuming he achieves his goal and the fund earns 7% compounded semi-annually after he retires, what is the amount that Moses will be able to take out of his Retirement Fund at the end of every six months for 25 years after he retires?

• A) $17,053
• B) $24,270
• C) $28,984
• D) $3,053
• E) $6,324

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Definitions:

Accounts Receivable

Outstanding payments due to a firm from its customers for delivered goods or services awaiting payment.

Cost of Goods Sold

The total direct costs attributed to producing goods, including materials and labor, which are sold during a certain period.

Total Asset Turnover

A financial ratio that measures a company’s effectiveness in using its assets to generate sales revenue.

Inventory Turnover

A ratio that shows how many times a company's inventory is sold and replaced over a specified period, indicating the efficiency of inventory management.