You Want to Retire with $400 000 in the Bank

question 147

Multiple Choice

You want to retire with $400 000 in the bank and you are able to earn 6% compounded quarterly for the next 25 years. How much money do you have to invest today in order to achieve your goal?

• A) $90 251.78
• B) $90 251.77
• C) $90 001.78
• D) $90 201.77
• E) $90 001.77

---

Definitions:

Wage Rate

The standard amount of pay given for work performed, typically expressed per hour, day, or piece.

Equilibrium

A balance between market demand and supply, resulting in steady prices.

Factor's Price

Refers to the price of inputs used in the production of goods or services, such as labor, raw materials, and capital.

Total Cost

The complete expenditure incurred by a firm in the production of goods or services, including both fixed and variable costs.