Today,you Are Retiring

question 60

Multiple Choice

Today,you are retiring. You have a total of $413,926 in your retirement savings and have the funds invested such that you expect to earn an average of 3%,compounded monthly,on this money throughout your retirement years. You want to withdraw $2,500 at the beginning of every month,starting today. How long will it be until you run out of money?

• A) 185.00 months
• B) 213.29 months
• C) 227.08 months
• D) 236.84 months
• E) 249.69 months

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Definitions:

Cotton Cultivation

The agricultural process of growing cotton plants for their fibers, which are harvested and processed to make textile products.

Second Bank

A federal institution that served as the United States' central bank from 1816 to 1836, succeeding the First Bank of the United States.

Nicholas Biddle

A prominent early 19th-century American financier and President of the Second Bank of the United States, known for his battles with President Andrew Jackson over the bank's renewal.

Paul Volcker

An American economist who served as the Chairman of the Federal Reserve from 1979 to 1987, known for his measures to combat inflation by controlling money supply.