Decide whether the statement makes sense. Explain your reasoning.Paul figures that at today's prices he can live on 
per year. Currently, banks are offering an APR of 5%. So he says "if I build a retirement fund that gives me $500,000 by the time I retire, then if the APR remained at 5% for ever, and if I lived for ever, I could live on the interest alone for ever. That's because 5% of $500,000 is 
What will be an ideal response?
No, the statement does not make sense. Due to inflation, the buying power of 
will decrease over time. As the years go by, the amount that Paul needs to live on per year will increase, and 
per year will no longer be enough.
You might also like to view...
Find the indicated sum.
A. 71 B. 90 C. 33 D. 45
Solve the problem.In 2011, a country's government projected total receipts of $2590 billion ($2.590 trillion) and a deficit of $223 billion for 2013. If outlays turn out to be higher than expected by 7% while receipts turn out to be lower by 7%, what would the 2013 surplus or deficit be?
A. $601 billion deficit B. $571 billion deficit C. $155 billion deficit D. $215 billion deficit
Solve the equation for the unknown quantity.4x + 2 = 2x - 2
A. -1 B. 1 C. -2 D. 2
Bronfenbrenner's bioecological approach proposes that society, types of governments, religious value systems, and political value systems are all part of the what?
A. mesosystem B. microsystem C. exosystem D. macrosystem