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Harold Is Planning to Retire in 21 Years

Question 6

Multiple Choice

Harold is planning to retire in 21 years. After that he will need an income of $4,500 at the end of every month for the subsequent 25 years. He is going to make one investment today to provide all of the money he will eventually collect. His investments will earn 9% compounded monthly. How much should he invest today?


A) $103,817
B) $104,397
C) $81,582
D) $82,194
E) $205,390

Correct Answer:

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