Approximately how much must be saved for retirement in order to withdraw $100,000 per year for the next 25 years if the balance earns 8% annually,and the first payment occurs 1 year from now?
A) $1,067,000
B) $1,250,000
C) $2,315,000
D) $2,500,000

Question

Quizplus · Accepted Answer

The present value of an annuity formula is used to calculate the amount needed to withdraw $100,000 annually for 25 years at an 8% interest rate. The correct calculation results in approximately $1,067,000.

Approximately How Much Must Be Saved for Retirement in Order