Your finance professor suggests that you should have $2,500,000 in your retirement portfolio before you even THINK about retiring. Recently, your uncle sold valuable California real estate and handed you a check for $300,000. (This is the amount you have after paying taxes. He is now your favorite uncle.) How much of the $300,000 must you set aside today if you invest a portion of the money at an annual rate of 8.0% and you wish to retire in 35 years with the amount suggested by your finance professor? A) $169,086 B) $14,508 C) $130,914 D) At an annual rate of return of 8.0%, $300,000 is not a large enough investment to reach the goal amount of $2,500,000 in 35 years. A B
Your finance professor suggests that you should have $2,500,000 in your retirement portfolio before you even THINK about retiring. Recently, your uncle sold valuable California real estate and handed you a check for $300,000. (This is the amount you have after paying taxes. He is now your favorite uncle.) How much of the $300,000 must you set aside today if you invest a portion of the money at an annual rate of 8.0% and you wish to retire in 35 years with the amount suggested by your finance professor? A) $169,086 B) $14,508 C) $130,914 D) At an annual rate of return of 8.0%, $300,000 is not a large enough investment to reach the goal amount of $2,500,000 in 35 years. A B
PFIN (with PFIN Online, 1 term (6 months) Printed Access Card) (New, Engaging Titles from 4LTR Press)
6th Edition
ISBN:9781337117005
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Chapter14: Planning For Retirement
Section: Chapter Questions
Problem 2FPE
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