A Worker Wants to Set Aside Some Money for Retirement

question 137

Multiple Choice

A worker wants to set aside some money for retirement, hoping to live off of the interest income. If the interest rate is 10% and he wishes to draw interest of $50,000 per year, how much should he save before retirement?

• A) $500,000
• B) $50 million
• C) $1 million
• D) $10 million

Understand and analyze the concept of ratio and its application in financial decisions regarding personal income and expenses.

Comprehend the methodology of preparing financial documents and tables, such as amortization tables.

Understand and apply concepts of geometric and spatial measurements in practical scenarios like room sizing and property layouts.

Grasp the concept of Adjustable Rate Mortgage (ARM) and its implications for homeowners.