When Estimating Your Need Funding at Retirement

question 9

Multiple Choice

When estimating your need funding at retirement

• A)a higher interest rate assumption and a lower inflation rate assumption reduce the required current savings needed to meet your target.
• B)a higher interest assumption and a higher inflation assumption reduce the required current savings needed to meet your target.
• C)a lower interest rate assumption and a higher inflation assumption reduce the required current savings needed to meet your target.
• D)a lower interest rate assumption and a lower inflation rate assumption reduce the required current savings needed to meet your target.

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Definitions:

Resampling Method

A statistical technique that involves taking repeated samples from observed data, used for estimation or testing hypotheses.

Bootstrap

A statistical method that involves resampling with replacement from a dataset to assess variability in a statistic.

Permutation

A permutation is an arrangement of all or part of a set of objects, with regard to the order of the arrangement.

Income

Financial gain accumulated over a period, such as wages from employment, profits from investments, or returns from assets.