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