You Are Saving for Retirement

question 62

Multiple Choice

You are saving for retirement.To live comfortably,you decide that you will need $2.5 million dollars by the time you are 65.If today is your 30th birthday,and you decide,starting today,and on every birthday up to and including your 65th birthday,that you will deposit the same amount into your savings account.Assuming the interest rate is 5%,the amount that you must set aside each year on your birthday is closest to:

• A)$71,430
• B)$27,680
• C)$26,100
• D)$26,260

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Definitions:

Solid Foods

Foods that are not liquid or pureed, typically introduced to infants between 4 to 6 months of age as they develop the necessary oral and motor skills.

Rice Cereal

Rice cereal is a type of food often used as one of the first solid foods introduced to babies due to its easy digestibility.

Strained Beef

Cooked beef that has been processed or modified to remove excess liquid or fibers, often for dietary or culinary purposes.

Glycemic Index

A measure that ranks foods according to their impact on blood glucose levels.