Cover living expenses

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Reference no: EM132044438

An individual wants to retire in 25 years. At that time (s)he wants to be able to withdraw $2500 per month to cover living expenses. This individual has an expectation that (s)he will live 25 years after the date of retirement.

The interest rate is 6% per year.

This individual has assumed that:

The interest rate is constant over time                                             True                          False

The expected time frames are 25 years                                           True                          False

There are no additional risks to be considered                            True                          False

There is money left over 50 years from now                                 True                          False

This is a short-term investment plan                                                True                          False

Reference no: EM132044438

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