You Want to Retire in 40 Years and You Have

question 7

Multiple Choice

You want to retire in 40 years and you have $40,000 saved in your retirement account. You believe you will need $1,500,000 upon retirement. What rate will you need to earn on the account to achieve this goal?

• A) 6.75 percent
• B) 7.48 percent
• C) 9.13 percent
• D) 9.48 percent

---

Definitions:

Systematic Planning Ability

The capacity to develop, implement, and manage plans in an organized and methodical manner, often aimed at achieving specific objectives.

Memory Task

A task or activity designed to test or enhance the retention and recall capabilities of an individual's memory.

Navajo Children

Children from the Navajo nation, a Native American tribe, whose upbringing and education can be significantly influenced by traditional cultural practices and values.

Mental Age

A measure of an individual’s cognitive ability expressed in terms of the age at which an average individual reaches the same ability.