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 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