After Saving Diligently Your Entire Career, You and Your Spouse

Multiple Choice

After saving diligently your entire career, you and your spouse are ready to retire with a nest egg of $500,000. You need to invest this money in a mix of stocks and bonds that will allow you to earn $4,000 per month for 30 years. What annual interest rate (APR) do you need to earn?

A) 6.92 percent
B) 7.45 percent
C) 8.94 percent
D) 9.17 percent