You Would Like to Have Enough Money Saved to Receive

question 14

Multiple Choice

You would like to have enough money saved to receive an $80,000 per year perpetuity after retirement. How much would you need to have saved in your retirement fund to achieve this goal? (Assume that the perpetuity payments start on the day of your retirement. The annual interest rate is 10 percent.)

• A)$1,500,000
• B)$880,000
• C)$800,000
• D)$80,000

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Definitions:

Secondary group

A large, impersonal social group whose members pursue a specific goal or activity, characterized by weak emotional ties and short-term relationships.

Social network

A structure made up of a set of actors (such as individuals or organizations) and the dyadic ties between these actors.

Anonymous

Not identified by name or remaining unknown in identity.

Left-handed people

Individuals who predominantly use their left hand for activities such as writing and handling tools, comprising a minority of the population.