Henry Rearden Is Saving for Retirement and Has Determined That

question 63

Multiple Choice

Henry Rearden is saving for retirement and has determined that to live comfortably he must save $3 million by his 65 birthday.Henry just turned 30 today,and he has decided that starting today and continuing on every birthday up to and including his 65th birthday,he will deposit the same amount into an individual retirement account (IRA) .If Henry can earn 8% on his IRA,then the amount he must set aside each year to make sure that he will have $3 million in his account on his 65th birthday is closest to:

• A) $16,035
• B) $17,410
• C) $83,335
• D) $85,715

---

Definitions:

Value-Added Taxes

A tax on the amount by which the value of an article has been increased at each stage of its production or distribution.

Final Customer

The end user or consumer who purchases a product or service for personal use and not for resale or further processing.

Homeshoring

A practice where businesses hire employees to work from home or a remote location rather than in a traditional office setting, often used as an alternative to offshoring.

Reshoring

The process of bringing back manufacturing and services to a country from overseas to strengthen the local economy and reduce reliance on foreign suppliers.