Is It Possible to Create a Retirement Estate of $585,000

question 69

Multiple Choice

Is it possible to create a retirement estate of $585,000 instead of $310,000 without requiring much more to be invested every month?

• A) probably not with inflation working against you
• B) depends upon the interest rate or return you earn on the investment as well as the number of years until retirement.
• C) absolutely not
• D) there is not enough information available to answer this question

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Definitions:

Times Interest Earned Ratio

A financial metric that measures a company's ability to meet its interest obligations, calculated by dividing earnings before interest and taxes by interest expenses.

Acid-Test Ratio

A financial metric that assesses a company's ability to pay off its current liabilities with its most liquid assets, excluding inventory.

Days' Sales Uncollected

A financial metric that measures the average number of days it takes a company to collect payments after a sale has been made.

Average Accounts Receivable

The mean amount of money owed to a company by its customers over a specific period, indicating the efficiency of credit policies.