Maria Has Decided That She Can Live on $80,000 a Year

question 30

Multiple Choice

Maria has decided that she can live on $80,000 a year upon retirement, and she expects to live for thirty years after she has retired. If she can earn an average annual rate of return of 8% after
She retires, what minimum amount must she have accumulated in her retirement account one
Year before she makes her first withdrawal in order to meet her requirement? Round your
Answer to the nearest dollar.

• A)$2,000,000
• B)$900,623
• C)$1,000,000
• D)$833,910

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Definitions:

Observations

Observations involve the active acquisition of information from a primary source, using the senses as the primary data collection tools.

Predictions

Statements or claims about future events or outcomes based on current evidence or trends.

Case Study

A research method involving an in-depth investigation of a single individual, group, event, or situation to explore underlying principles or phenomena.

Single Individual

Referring to one person, emphasizing the focus on an individual basis rather than a group or collective.