You Want to Retire in 40 Years and You Have

question 7

Multiple Choice

You want to retire in 40 years and you have $40,000 saved in your retirement account. You believe you will need $1,500,000 upon retirement. What rate will you need to earn on the account to achieve this goal?

• A) 6.75 percent
• B) 7.48 percent
• C) 9.13 percent
• D) 9.48 percent

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Definitions:

Equity Investments

Investments in the equity of other companies, representing ownership interests that offer potential dividends and capital gains.

Structured Entity

A specially designed entity created to fulfill specific business needs or purposes, often used in financial engineering or for investment purposes.

Control

The power to direct the financial and operating policies of an entity with an aim to gain economic benefits from its activities.

PSAB Standards

The Public Sector Accounting Board (PSAB) standards are guidelines for financial accounting and reporting in the public sector in Canada.