A Financial Advisor Recommends Saving $1,000,000 for a Comfortable Retirement

question 89

Multiple Choice

A financial advisor recommends saving $1,000,000 for a comfortable retirement.With investment returns of 8%,what is the annual year-end cash flow generated by the $1 million for 25 years,assuming you spend all of the principal and interest?

• A) $80,000
• B) $86,740
• C) $93,679
• D) $94,978

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Definitions:

Replicate

To duplicate a study or experiment to verify its results or to copy a biological or chemical process for scientific or practical purposes.

1960s

A decade marked by significant social, political, and cultural changes, including movements for civil rights, peace, and environmentalism.

Experimenter

An individual who conducts a controlled test or investigation in scientific, psychological, or other research.

Rewards

Benefits or compensation offered or received as recognition for accomplishments, service, or behavior that meets desired criteria.