Using the Time Value of Money Charts Provided, Answer the Following

question 70

Multiple Choice

Using the Time Value of Money charts provided, answer the following question. (Note to Instructors: Provide the appropriate tables to students from Personal Finance, Seventh Edition, Appendix C: Financial Tables.) Jack is 35 years old and is planning to retire at age 65. Based on a variety of factors, he is planning a retirement of 20 years. Jack determines that he will need $20,000 per year during his 20 years of retirement. If he can invest at 9%, how much will he need to save each year beginning today to reach his goal?

• A) $11,428.57
• B) $6,086.00
• C) $1,339.47
• D) $20,000.00

---

Definitions:

Inferences

The process of drawing logical conclusions from premises known or assumed to be true.

Meta-Analysis

A statistical technique that combines the results of multiple scientific studies to arrive at a conclusion about an overall body of research.

Unintended Changes

Alterations that occur without a deliberate plan or intention, often leading to unexpected outcomes.

Natural Contexts

Environments or situations that occur naturally, without human intervention, allowing for the observation of behaviors and phenomena in their true form.