Approximately How Much Must Be Saved for Retirement in Order

question 126

Multiple Choice

Approximately how much must be saved for retirement in order to withdraw $100,000 per year for the next 25 years if the balance earns 8 percent annually, and the first payment occurs one year from now?

• A)$1,067,000
• B)$1,250,000
• C)$2,315,000
• D)$2,500,000 PV = $100,000
• = $100,000 x (12.5 -1.8252)

---

Definitions:

Enduring Principles

Fundamental and lasting beliefs or guidelines that dictate behavior and action.

Conduct Over Time

Refers to the patterns or manners of behavior that an individual or organization demonstrates consistently over a period.

Core Values

Fundamental beliefs or guiding principles that dictate behavior and action within an organization.

Cultural Ethos

The characteristic spirit, moral values, and customs of a community or society.