After Retirement,you Expect to Live for 25 Years

question 15

Multiple Choice

After retirement,you expect to live for 25 years.You would like to have $75,000 income each year.How much should you have saved in your retirement account to receive this income if the interest rate is 9% per year? (Assume that the payments start one year after your retirement.)

• A)$736,693.47
• B)$83,431.17
• C)$1,875,000
• D)$1,213,487.12

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Definitions:

Relative Approach

A method of evaluation or analysis that is based on comparisons or relationships between objects, situations, or concepts rather than absolute measures.

Desired Performance

The specific level of output or outcome that an individual or organization aims to achieve.

Actual Performance

The real, observable output or results that an individual or organization achieves, as opposed to expected or planned outcomes.

Exceeded The Standard

Surpassing the established benchmarks or expectations set for performance or quality.