If You Want to Save $1 000 000 for Retirement

question 52

Multiple Choice

If you want to save $1 000 000 for retirement with $200 monthly deposits at eight percent interest compounded monthly,how long will it take?

• A)50 years,1 month
• B)43 years,3 months
• C)44 years,4 months
• D)44 years,1 month

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Definitions:

Standard Normal

A normal distribution with a mean of zero and a standard deviation of one, used as a basis for comparing other normal distributions.

Area

Area describes the measure of the extent of a two-dimensional surface or shape, expressed in square units.

Continuous Variable

A variable that can take an infinite number of values within a given range, allowing for any value in the range, including fractions and decimals.

Normal Distribution

A bell-shaped frequency distribution curve that is symmetrical about the mean, representing the distribution of many types of data.