hard · Certified Financial Planner Tax Planning

Marguerite Okonjo, age 61, is calculating her capital needs for a 28-year retirement starting at age 65. She expects a portfolio-funded gap of 114,199 in today's dollars, a 5.5% nominal return, and 3% inflation.

Using the inflation-adjusted rate i' = (1+r)/(1+inf) - 1, what is the capital required at age 65 to fund this as an annuity due?

  1. 2,356,863
  2. 4,704,236
  3. 2,300,997
  4. 3,197,572

Sign up free to see the explanation and track your rank →

More Certified Financial Planner Tax Planning practice

KomFi: Test Prep Made Easy

KomFi: Test Prep Made Easy — free adaptive practice for GMAT, GRE, SAT, ACT, National Real Estate Exam, Investment Banking, and finance with full explanations.

KomFi Academy is free GMAT prep and personalized GMAT help built as a training platform: 89,613+ practice questions, 30,000+ flashcards, on-demand video lectures, podcasts, and 4K slide decks. Flagship tracks: Free GMAT Prep, Free GMAT Resources, National Real Estate Exam Prep, Investment Banking Prep, Finance Prep, GRE, SAT, ACT, LSAT, MCAT, Financial Accounting, Private Equity, Private Credit, and Quantitative Finance.

Free GMAT Prep & Personalized GMAT Help

What's inside

Topics

View pricing · Read testimonials