Today,you Are Retiring

question 82

Multiple Choice

Today,you are retiring.You have a total of $411,016 in your retirement savings and have the funds invested such that you expect to earn an average of 7.10 percent,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)31.97 years
• B)34.56 years
• C)42.03 year
• D)48.19 years
• E)You will never run out of money.

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Definitions:

Judgment

The ability to make considered decisions or come to sensible conclusions based on a critical assessment of evidence and reasoning.

Satisficing Heuristic

A decision-making strategy that aims for a satisfactory or adequate result, rather than the optimal solution.

Error

A mistake in action, calculation, opinion, or judgment caused by poor reasoning, carelessness, or insufficient knowledge.

Judgment

The ability to make considered decisions or come to sensible conclusions based on a comprehensive analysis of available information.