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After Retirement, You Expect to Live for 25 Years

Question 12

Multiple Choice

After retirement, you expect to live for 25 years. You would like to have $75,000 income each year. How much should you have saved in your retirement account to receive this income if the annual interest rate is 9 percent per year? (Assume that the payments start one year after your retirement.)


A) $736,693.47
B) $83,431.17
C) $1,875,000
D) $1,213,487.12

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