For which of the following steps associated with retirement needs calculations is the investment rate used?
A)To bring current cash shortfall to future period.
B)To establish lump sum shortfall from the amount of payouts.
C)To bring current investment sum to future period
D)Both a and b
E)Both b and c

Question

Quizplus · Accepted Answer

The investment rate is used to bring the current investment sum to the future period, as it determines the growth rate of the investment over time. It is not used for bringing cash shortfall to the future period or establishing lump sum shortfall from the amount of payouts.

For Which of the Following Steps Associated with Retirement Needs