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 in perpetuity after retirement for you and your heirs. How much would you need to have saved in your retirement fund to achieve this goal? (Assume that the perpetuity payments start one year from the date of your retirement. The annual interest rate is 8 percent.)

A) $7,500,000
B) $750,000
C) $1,000,000
D) $800,000