You Want to Have $1,200,000 When You Retire and You

question 58

Multiple Choice

You want to have $1,200,000 when you retire and you are in a defined contribution plan. You can earn 9 percent per year on the money invested and you will retire in 25 years. Your employer also contributes to your plan. The employer will contribute 4 percent of what you put into the plan each year. How much do you have to contribute per year to meet your goal?

• A)$18,435.43
• B)$17,654.87
• C)$16,879.32
• D)$13,622.60
• E)$15,999.44

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Definitions:

Exoskeleton

A rigid external covering for the body in some invertebrate animals, especially arthropods, providing both support and protection.

Echinoderm

A phylum of marine animals known for their radial symmetry and unique water vascular system, including starfish and sea urchins.

Evolutionary Relationships

The connections among different species or organisms that can be traced back to a common ancestor, explored through genetics, physical characteristics, and other biological data.

Amniotes

Terrestrial vertebrates: reptiles, birds, and mammals; animals whose embryos are enclosed by an amnion.