Jim Luster Wants to Have Saved Enough Money by the Time

Multiple Choice

Jim Luster wants to have saved enough money by the time he is 65 to invest it and earn a $60,000 annual income for the rest of his life. He wants to be able to leave that same amount to his heirs, no matter how long he lives. If he can earn 8% on invested money, how much does he need to have accumulated by the time he is 65?

A) $480,000
B) $600,000
C) $750,000
D) $900,000
E) Cannot be determined based on the information given.