You Wish to Have $10,000 Per Year as a Retirement

question 28

Multiple Choice

You wish to have $10,000 per year as a retirement supplement for 20 years (from age 65-85) .You are now 40 years old.How much must you save each year for the next 25 years if you assume your savings will earn 12% annually?

• A)$560.17
• B)$1,499.99
• C)$5,403.87
• D)none of these

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Definitions:

Weighted Average Method

An inventory costing method that calculates item costs based on the weighted average of all units available for sale during the period.

FIFO

An inventory valuation method where the first items placed in inventory are the first sold, standing for "First-In, First-Out."

Process Cost System

An accounting system used to apply costs to similar products that are mass-produced in a continuous fashion.

Shampoo Manufacturer

A company that specializes in producing and possibly formulating shampoos for cleaning hair and scalp.