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
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question 33
Transcribed Image Text:QUESTION 33
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.
O A
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