When You Retire 36 Years from Now, You Want to Have

Multiple Choice

When you retire 36 years from now, you want to have $2 million. You think you can earn an average of 11.5% on your investments. To meet your goal, you are trying to decide whether to deposit a lump sum today, or to wait and deposit a lump sum 3 years from today. How much more will you have to deposit as a lump sum if you wait for 3 years before making the deposit?

A) $15,344.14
B) $15,677.78
C) $16,208.11
D) $17,021.12
E) $19,407.78