Assume That Your Retirement Income Shortfall Is $10,000 Per Year

Assume that your retirement income shortfall is $10,000 per year, increasing at 4% per year. You expect to live 30 years in retirement and earn an average rate of return of 6% on your investments. If you plan to use both principal and interest to fund your income needs, your savings goal would be closest to (select the closest answer)

A) $10,000.
B) $200,000.
C) $500,000.
D) $2,000,000.