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:

Break-even

The point at which total revenues equal total expenses, resulting in no net loss or gain.

Sales Dollars

The total revenue generated from the sale of goods or services, measured in monetary terms.

Seed Division

In a corporate setting, the Seed Division could refer to a segment of a company focused on developing and selling seeds or a startup phase within an organization aimed at growing new business ideas.

Break-even

The point at which total revenues equal total expenses, resulting in no net profit or loss.