After Graduating from College with a Finance Degree,you Begin an Ambitious

question 11

Multiple Choice

After graduating from college with a finance degree,you begin an ambitious plan to retire in 25 years.To build up your retirement fund,you will make quarterly payments into a mutual fund that on average will pay 12% APR compounded quarterly.To get you started,a relative gives you a graduation gift of $5,000.Once retired,you plan on moving your investment to a money market fund that will pay 6% APR with monthly compounding.As a young retiree,you believe you will live for 30 more years and will make monthly withdrawals of $10,000.To meet your retirement needs,what quarterly payment should you make?

• A) $2,221.45
• B) $2,588.27
• C) $2,746.50
• D) $2,904.73

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Definitions:

Reform Movement

A collective effort aiming to bring about social, political, economic, or environmental changes.

World Trade Organization

An international organization that regulates international trade and ensures that trade flows as smoothly, predictably, and freely as possible between its member countries.

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The use of dedicated websites and applications to interact with other users, or to find people with similar interests to oneself.

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The idea that individuals should have rights and obligations globally, not just within the nation-state where they hold citizenship.