Question

Carol has an additional retirement need of $30,000 annually in today's dollars. She will retire in...

Carol has an additional retirement need of $30,000 annually in today's dollars. She will retire in 15 years and projects a retirement period of 20 years. Carol believes she can achieve a 6% after-tax rate of return and is assuming a 4% annual rate of inflation. Using the level payment approach, how much will Carol need to save in a single annual payment at the end of each year to fund her retirement need?

38,973.65

B)

$36,767.56

C)

$34,044.67

D)

$30,000.00

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