An Individual Wants to Receive End-Of-Month Payments of $1,200 for 20

Multiple Choice

An individual wants to receive end-of-month payments of $1,200 for 20 years after she retires 15 years from now. What lump amount must she invest today to provide the retirement income? Assume the investment earns 7% compounded monthly for the entire 35 years.

A) $49,864.93
B) $54,645.42
C) $54,328.50
D) $187,835.65
E) $155,681.89