Asked by
Jessie Sanders
on Oct 19, 2024
Verified
Sharon decides to put $6,500 into her retirement plan at the age of 26. She will continue to invest the same amount for a total of 6 years and then stop contributing. Assume 10.8% annual return.
How much money will Sharon have in her retirement plan when she is ready to retire at age 63?
A) $554,856
B) $623,245
C) $1,229,675
D) $1,311,805
Annual Return
The percentage change in an investment's value over a one-year period, including any dividends or interest, reflecting the compound annual growth rate.
- Determine the prospective value of investments by evaluating differing rates of return and inflation rates.
- Construct plans for accomplishing long-range financial targets, encompassing retirement and bequeathing assets, by means of financial analysis.
- Execute financial planning tactics to secure adequate funds for retirement.
Verified Answer
CR
Learning Objectives
- Determine the prospective value of investments by evaluating differing rates of return and inflation rates.
- Construct plans for accomplishing long-range financial targets, encompassing retirement and bequeathing assets, by means of financial analysis.
- Execute financial planning tactics to secure adequate funds for retirement.