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

Multiple Choice

When you retire forty years from now, you want to have $1 million. You think you can earn an average of 8.5% on your money. To meet this goal, you are trying to decide whether to deposit a lump sum today, or to wait and deposit a lump sum five years from today. How much more will you have to deposit as a lump sum if you wait for five years before making the deposit?

A) $18,001.06
B) $18,677.78
C) $18,998.03
D) $19,272.81
E) $21,036.83