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An Investor Wants to Retire When She Has $3,000,000 in Savings

Question 40

Multiple Choice

An investor wants to retire when she has $3,000,000 in savings, after-taxes. Given a 20% tax rate at retirement, how much money, per year, must she save in order to retire in 30 years, given an 11% annual return? Assume she uses a traditional IRA and liquidates the entire portfolio at retirement.


A) $12,827
B) $13,903
C) $15,074
D) $18,842

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