You Would Like to Have Enough Money Saved to Receive

Multiple Choice

You would like to have enough money saved to receive $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 start one year from the date of your retirement. The interest rate is 8%) ?

A) $7,500,000
B) $750,000
C) $1,000,000
D) None of the above