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Steve is planning to retire in couple of years. He has estimated that his annual...

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Finance

Steve is planning to retire in couple of years. He has estimated that his annual requirement at the beginning of the1st year of retirement would be $85,000 per year. He expects to live for 22 years after retirement. How much should be the accumulated (lump sum) amount in his retirement account at the beginning of retirement so that his post retirement period is funded. Assume inflation to be 2.5% and investment return to be 8.25% per year.

$987,088 $1,141,739 $1,118,609 $1,210,769

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