Use the Following to Answer Questions

Multiple Choice

Use the following to answer questions
Bob Lower wants to retire in 10 years. At that time he wants to have a lump sum accumulated that would allow him to withdraw $35,000 a year for the next 20 years. Assume that Bob earns an after-tax return of eight percent. Ignore the inflation in these calculations.
- How much does Bob need to invest today in order to fulfill his needs?

A) $171,903
B) $151,169
C) $51,212
D) $55,308
E) None of the above