MATH SOLVE

5 months ago

Q:
# Silvia wants to retire at 65 and live on $40,000 a year. How much does she need to save to ensure that her retirement funds last until she is 85?Select the best answer from the choices provided.$800,000 because she will need to save for 20 years times $40,000more than $800,000 because taxes and inflation will increase the value of her savingsless than $800,000 because returns will continue to increase the amount in her savings even after retirementmore than $800,000 because compound return will reduce her savings

Accepted Solution

A:

She must save 800,000 because that's how much she'll need in those 20 years of retirement. The first choice is correct.