You Would Like to Have Enough Money Saved to Receive

Multiple Choice

You would like to have enough money saved to receive a growing annuity for 20 years, growing at a rate of 5 percent 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 percent.

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