Approximately How Much Should Be Accumulated by the Beginning of Retirement

question 71

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 8 percent interest with monthly compounding?

• A)$261,500.00
• B)$323,800.00
• C)$578,700.00
• D)$690,000.00 PV = $2,500
• = $2,500 [149.925-20.405]
• = $2,500 [129.52]

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Definitions:

Variable Overhead Spending Variance

The difference between the actual variable overheads incurred and the expected costs based on standard overhead rates.

Standard Quantity

The expected or predetermined amount of materials or input required to produce a single unit of product.

Standard Price

A predetermined cost assigned to materials, labor, and overhead, used as a benchmark against which the actual costs are compared.