You Want to Have $5 Million When You Retire in 40

question 28

Multiple Choice

You want to have $5 million when you retire in 40 years. You believe you can earn 9% per year on your investment. How much must you invest each year to achieve your goal when you retire? (Ignore all taxes)

• A) $10,412
• B) $11,619
• C) $14,798
• D) $15,295
• E) none of the above $5 million/[((1.09)⁴⁰ -1)/0.09]

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Definitions:

Prices Rising

An economic scenario where the general level of prices for goods and services is increasing over time, often referred to as inflation.

CPI

A gauge called the Consumer Price Index assesses the weighted average price shifts in a collection of consumer products and services, encompassing areas like food, healthcare, and transportation.

Economists

Professionals who study the production, distribution, and consumption of goods and services, often focusing on research, analysis, and the development of economic theories.

Quality Changes

Alterations in the features, specifications, or performance of goods and services, often impacting their perceived value or utility.