Which of the Following Strategies Will Allow Real Retirement Spending

question 52

Multiple Choice

Which of the following strategies will allow real retirement spending to remain approximately equal, assuming savings of $1,000,000 invested at 8 percent, a 25-year horizon, and 4 percent expected inflation?

• A)Spend approximately $63,000 annually
• B)Spend approximately $78,225 annually
• C)Spend approximately $93,680 annually
• D)Spend approximately $127,500 annually Real Rate = -1 = 3.85%
• $1,000,000 = pmt

---

Definitions:

Cellular Respiration

Metabolic reactions that use the energy from carbohydrate, fatty acid, or amino acid breakdown to produce ATP molecules.

Decomposers

Organisms that break down dead or decaying organisms, contributing to the nutrient cycle by recycling nutrients back into the ecosystem.

Food Chain

The order in which one population feeds on another in an ecosystem, thereby showing the flow of energy from a detritivore (detrital food chain) or a producer (grazing food chain) to the final consumer.

Algae

A diverse group of photosynthetic organisms, ranging from unicellular microalgae to large multicellular forms, that are typically found in aquatic environments.