You Want to Save an Equal Amount Each Year for the Next

Multiple Choice

You want to save an equal amount each year for the next 38 years,at which time you will retire.What amount of annual savings are needed if you desire a retirement income of $55,000 a year for 25 years and earn 7.5 percent,compounded annually?

A) $3,333.33
B) $2,640.85
C) $3,146.32
D) $2,889.04
E) $3,406.16