You Have Just Retired with Savings of $1

question 59

Multiple Choice

You have just retired with savings of $1.5 million.If you expect to live for 30 years and to earn 8% a year on your savings,how much can you afford to spend each year? Assume that you spend the money at the start of each year.

• A) $112,148.50
• B) $120,000.00
• C) $123,371.44
• D) $133,241.15

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Definitions:

Production

The process of creating goods or services by combining labor, capital, and resources to meet consumer demand.

Bushels

A unit of volume that is used primarily in the United States to measure agricultural products such as grain.

Marginal Cost

The expense of fabricating another single unit of a product or service.

Average Variable Cost

The total variable costs of production divided by the quantity of output, showing the average cost of producing each unit excluding fixed costs.