Approximately How Much Must Be Saved for Retirement in Order

question 40

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% annually,and the first payment occurs 1 year from now?

• A) $1,067,000
• B) $1,250,000
• C) $2,315,000
• D) $2,500,000

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Definitions:

General Cash Offers

A public offering in which securities are sold for cash to the general investing public.

Flotation Costs

The costs associated with issuing new securities, including underwriting fees, legal expenses, and registration fees.

Rights Offerings

A method by which a company raises capital by giving existing shareholders the right to buy additional shares at a discount.

Market Value

The existing market price for the acquisition or sale of an asset or service.