You Would Like to Have Enough Money Saved to Receive

Multiple Choice

You would like to have enough money saved to receive an $80,000 per year perpetuity after retirement so that you and your family can lead a good life. How much would you need to save in your retirement fund to achieve this goal (assume that the perpetuity payments starts on the day of retirement. The interest rate is 10%) ?

A) $1,500,000
B) $880,000
C) $800,000
D) None of the above