You Want to Save an Equal Amount Each Year for the Next

question 108

Multiple Choice

You want to save an equal amount each year for the next 38 years,at which time you will retire.What amount of annual savings are needed if you desire a retirement income of $55,000 a year for 25 years and earn 7.5 percent,compounded annually?

• A)$3,333.33
• B)$2,640.85
• C)$3,146.32
• D)$2,889.04
• E)$3,406.16

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Definitions:

Implied Warranty

An unwritten and unspoken guarantee that a product or service meets the minimum quality and functionality standards, assumed in a sale.

Fitness for a Particular Purpose

An assurance that a product will meet the requirements of a specific use for which the buyer informs the seller, implied in a sale under the Uniform Commercial Code.

WiFi

A technology that allows electronic devices to connect to a wireless local area network (WLAN), primarily using the 2.4 gigahertz and 5 gigahertz radio bands.

Implied Warranty

An unstated guarantee that a product will meet a minimum level of quality and functionality.