Mrs. Beach wants to invest a lump sum of money today to have $250,000 when she retires at 65 (she is 40 today).

How much of a deposit would she have to make if the interest rate on the C.D. was 5%? 73,825.69

What would Mrs. Beach have to deposit if she were to use high quality corporate bonds an earned an average rate of return of 7%.

What would Mrs. Beach have to deposit if she were to use common stock and earned an average rate of return of 11%.

What type of a problem is this? ___________