18.

Use the following information to answer the next two questions (Q22-Q23):

• Inflation rate of return: 4%
• Investment rate of return during retirement: 8%
• Retirement life expectancy: 38 years
• Lump sum capital needed at retirement (from the annuity method, rounded): $2,000,000
• Annuity payment needed at the beginning of each year from the investment portfolio at retirement, adjusted annually for inflation (used in the annuity method): $97,251

Question: Utilizing the above facts, how much total investment capital will this person need at retirement in order to fund their retirement lifestyle and to have the same amount of investment capital remaining at their death as they will have at retirement (capital preservation method, round to the nearest dollar)?

	a.	$2,450,571
	b.	$2,476,641
	c.	$2,107,381
	d.	$2,000,000