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

---

Definitions:

Ichthyosaurs

Extinct marine reptiles that resembled dolphins and lived during the time of the dinosaurs, known for their large eyes and streamlined bodies.

Pterosaur

An extinct group of flying reptiles that lived during the time of the dinosaurs, not dinosaurs themselves.

Terrestrial Life

Organisms that live and thrive on land as opposed to in water or air.

Plants

Multicellular organisms, primarily using photosynthesis for energy, characterized by green leaves and structural components like stems and roots.