You Would Like to Have Enough Money Saved to Receive

question 17

Multiple Choice

You would like to have enough money saved to receive $80,000 per year in perpetuity after retirement for you and your heirs. How much would you need to have saved in your retirement fund to achieve this goal? (Assume that the perpetuity payments start one year from the date of your retirement. The annual interest rate is 8 percent.)

• A)$7,500,000
• B)$750,000
• C)$1,000,000
• D)$800,000

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Definitions:

Negative Consequences

Unfavorable results or outcomes that arise as a result of an action, decision, or behavior, potentially causing harm or disadvantage.

Negative Reinforcement

A behavioral principle where the removal of an unfavorable event or outcome following a desired behavior increases the likelihood of that behavior being repeated in the future.

Intermittent Reinforcement

A conditioning schedule where a response is sometimes reinforced, leading to more robust behavioral responses.

Variable Interval Schedule

A reinforcement schedule in which a response is rewarded after an unpredictable amount of time has passed.