Approximately How Much Must Be Saved for Retirement in Order

Multiple Choice

Approximately how much must be saved for retirement in order to withdraw $100,000 per year for the next 25 years if the balance earns 8 percent annually, and the first payment occurs one year from now?

A) $1,067,000
B) $1,250,000
C) $2,315,000
D) $2,500,000 PV = $100,000
= $100,000 x (12.5 -1.8252)