You Would Like to Have Enough Money Saved to Receive

question 13

Multiple Choice

You would like to have enough money saved to receive a growing annuity for 20 years,growing at a rate of 5% per year,with the first payment of $50,000 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 10%.)

• A)$1,000,000.00
• B)$425,678.19
• C)$605,604.20
• D)$827,431.28