Ishan plans to retire at age 40 with a decent lifestyle.He assumes that he can safely earn a real return of 4% annually on his money and that he would need $4000 a month to last until he turned 90.How much money would he need to have accumulated at age 40 (to the nearest thousand)if he were going to retire and no longer earn any money?
A)$1 050 000
B)$2 980 000
C)$1 500 000
D)$2 400 000

Question

Quizplus · Accepted Answer

The correct answer is A because $1,050,000 is the amount of money that Ishan would need to have accumulated at age 40 in order to retire and no longer earn any money. This is based on the assumption that he can safely earn a real return of 4% annually on his money and that he would need $4000 a month to last until he turned 90.

Ishan Plans to Retire at Age 40 with a Decent