How Much Needs to Be Invested Today If Your Goal

question 64

Multiple Choice

How much needs to be invested today if your goal is to be able to withdraw $5,000 for each of the next ten years beginning one year from today? The return on the investment is expected to be 12%.

• A)$44,645
• B)$36,291
• C)$28,251
• D)$50,000

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Definitions:

Agency Authority

The legal capacity granted to an agent to act on behalf of someone else, allowing them to enter into contracts and make decisions.

Forgeries

The fraudulent making or alteration of a document with the intent to deceive or harm.

Acceptance

Within the realm of contract law, the process by which one accepts the conditions of a proposal, thus forming a legally binding agreement.

Draft

A preliminary version of a piece of writing or a plan for something, subject to revisions or edits.