You would like to have enough money saved to receive $80,000 per year in perpetuity after retirement for you and your heirs. How much would you need to have saved in your retirement fund to achieve this goal
A. $1,500,000
B. $880,000
C. $800,000
D. $80,000
Answer: PV = [(80,000/0.10)] × (1.1) = 880,000; or PV = 80,000 + 80,000/0.10.