You want to retire in 25 years and you have just inherited $300,000. You believe you will need $1,450,000 upon retirement. What rate will you need to earn on the account to achieve this goal?
A) 4.5 percent
B) 5.5 percent
C) 6.5 percent
D) 8.5 percent

Question

Quizplus · Accepted Answer

To find the rate needed, use the future value formula: FV = PV * (1 + r)^n. Plugging in the values: $1,450,000 = $300,000 * (1 + r)^25. Solving for r gives approximately 6.5%.

You Want to Retire in 25 Years and You Have