You Want to Retire in 40 Years and You Have

Multiple Choice

You want to retire in 40 years and you have $40,000 saved in your retirement account. You believe you will need $1,500,000 upon retirement. What rate will you need to earn on the account to achieve this goal?

A) 6.75 percent
B) 7.48 percent
C) 9.13 percent
D) 9.48 percent