An Individual Wants to Have $95,000 Per Year to Live

question 58

Multiple Choice

An individual wants to have $95,000 per year to live on when they retire in 30 years.The individual is planning on living for 20 years after retirement.If the investor can earn 6% during her retirement years and 10% during her working years,how much should she be saving during her working life? (Hint: Treat all calculations as annuities.)

• A) $9,872
• B) $8,234
• C) $7,908
• D) $6,624

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Definitions:

First Word

The initial instance of meaningful spoken language produced by a child.

Preoperational

A stage in Piaget's theory of cognitive development (approximately ages 2-7) where children begin to engage in symbolic play but lack the ability to perform operations or use logic.

Coax

To persuade someone gently and persistently to do something or to obtain something by using flattery or gentle urging.

Egocentrism

The inability to differentiate between one's own perspective and someone else's, often observed in early child development.