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

question 51

Multiple Choice

You want to have $1,200,000 when you retire and you are in a defined contribution plan. You can earn 9% 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% 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 1,200,000/FVIFA (9%, 25 years) = $14,167.50 total annual payment required. Your contribution must be 14,167.50/1.04 = $13,622.60

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Definitions:

Global Supply Chains

Supply chain operations that involve production and delivery activities spread over different countries, offering advantages like cost reduction and access to new markets but also presenting complex challenges.

Transit Times

The duration it takes for goods to be transported from one point to another, often considered in the selection of shipping methods.

Disruptions

Events or activities that cause a disturbance or interruption in normal operations or supply chain activities.