16. When you retire in 25 years, you would like your income each year to have the purchasing power of $200,000 today. You will earn 7% on your retirement savings each year (compounded annually) and expected inflation is 3% per year (compounded annually). What is the nominal amount of your first retirement income cash flow in 25 years?

a. $418,755.59 b. $518,434.41 c. $1,085,486.53 d. $2,272,767.74 e. None of the above