John Is 25 Years Old and Wishes to Retire in 30

Multiple Choice

John is 25 years old and wishes to retire in 30 years. His plan is to invest in a mutual fund earning a 12 percent annual return and have a $1 million retirement fund at age 55. How much must he invest at the end of each year to achieve this goal?

A) $7,499.96
B) $5,024.60
C) $4,143.65
D) $33,333.33