Randy Hill Wants to Retire in 20 Years with $1,000,000

question 3

Multiple Choice

Randy Hill wants to retire in 20 years with $1,000,000. If he can earn 10% per year on his investments, how much does he need to deposit each year to reach his goal? Round your answer to the nearest dollar.

• A)$17,460
• B)$18,000
• C)$5,727
• D)$25,000
• E)None of the above

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Definitions:

Confidence Interval

A set of numbers, taken from sample-based statistics, that is probable to contain the estimated value of an unspecified population parameter.

Population Standard Deviation

A measure of the spread or dispersion of a set of data points in a population.

Sampling Error

The discrepancy between a sample statistic and the actual population parameter, which arises purely by chance from random sampling.

Confidence Interval

A variety of numerical values, sourced from sample measurements, that is believed to include the value of a not-yet-known population attribute.