You Would Like to Have Enough Money Saved to Receive

question 21

Multiple Choice

You would like to have enough money saved to receive a growing annuity for 25 years, growing at a rate of 4 percent per year, with the first payment of $60,000 occurring exactly one year after retirement. How much would you need to save in your retirement fund to achieve this goal? The interest rate is 12 percent.

• A)$1,500,000.00
• B)$632,390
• C)$452,165
• D)$1,043,287