Approximately How Much Should Be Accumulated by the Beginning of Retirement

question 60

Multiple Choice

Approximately how much should be accumulated by the beginning of retirement to provide a $2,500 monthly check that will last for 25 years, during which time the fund will earn 6% interest with monthly compounding?

• A) $361,526.14
• B) $388,017.16
• C) $402,766.67
• D)$414,008.24

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Definitions:

Portion

A part or section of a whole, often expressed as a fraction or percentage.

Complete

To finish or make whole; in mathematics, often refers to making a square in quadratic equations or filling in missing parts of an expression or equation.

Acid Solution

A aqueous solution containing more hydrogen ions (H+) than hydroxide ions (OH-), typically having a pH less than 7.

Quarts

A unit of liquid measure equal to two pints or one fourth of a gallon, used especially in the US.