You Would Like to Have Enough Money Saved to Receive

question 47

Multiple Choice

You would like to have enough money saved to receive a growing annuity for 25 years,growing at a rate of 4% per year,with the first payment of $60,000 occurring exactly one year after retirement.How much would you need to save in your retirement fund to achieve this goal? (The interest rate is 12%.)

• A)$1,500,000.00
• B)$632,390
• C)$452,165
• D)$1,043,287

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Definitions:

Valence Shell

The outermost shell of an atom that contains the electrons most involved in chemical reactions.

Atom

The smallest unit of a chemical element, consisting of a nucleus of protons and neutrons, surrounded by electrons.

Negative Charge

A type of electrical charge characterized by the presence of more electrons than protons in an atom or molecule.

Electron

A subatomic particle with a negative charge, fundamental to electricity and chemical bonding.