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:

Texas Instruments

An American technology company that designs and manufactures semiconductors and various integrated circuits.

Principle of Justice

A fundamental normative rule ensuring fairness and equity among individuals within society or a system.

Inner Circle

A close group of advisors or a team that holds a privileged position of influence in an organization or group.

Getting Ahead

The process of making progress or advancing in one’s career, social status, or life in general.