Approximately How Much Should Be Accumulated by the Beginning of Retirement

question 105

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% interest with monthly compounding?

• A) $261,500.00
• B) $323,800.00
• C) $578,700.00
• D) $690,000.00

---

Definitions:

Contractual Duty

An obligation imposed by a contract that requires a party to act or refrain from acting in a certain manner.

Novation

The act of replacing an obligation to perform with a new obligation or replacing a party to an agreement with a new party.

Discharging Contract

Discharging a contract refers to the process by which parties are released from their obligations under the contract, for reasons such as fulfillment of the contract terms, mutual agreement, or impossibility of performance.

Third Party

An entity that is not directly involved in a transaction or agreement but may be affected by it or have an interest in it.