Mathematics

Ellis

8 December, 06:13

Silvia wants to retire at 65 and live on 40,000 a year. How much does she need to save to ensure that her retiement funds last until she is 85?

A.) $800,000 because she will need to save for 20 years times 40,000.

B.) More than 800,000 because taxes and inflation will increase that value of her savings.

C.) Less than 800,000 because returns will continue to increase the amount in her savings even after retirement.

D.) More than 800,000 because compound return will reduce her savings