Ishan Plans to Retire at Age 40 with a Decent

Multiple Choice

Ishan plans to retire at age 40 with a decent lifestyle.He assumes that he can safely earn a real return of 4% annually on his money and that he would need $4000 a month,paid to him at the end of each month,to last until he turned 90.How much money would he need to have accumulated at age 40 (to the nearest thousand) if he were going to retire and no longer earn any money?

A) $1 050 000
B) $2 980 000
C) $1 500 000
D) $2 400 000