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% per year, the first payment being $60,000 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 growing perpetuity payments start one year from the date of
Your retirement. The interest rate is 12%) ?

A) $1,500,000
B) $632,390
C) $452,165
D) None of the above