Allison, age 40, earns $95,000 annually; her wage replacement ratio has been determined to be 70%. She expects inflation will average 3% over her entire life expectancy. She expects to work until 67, and live until 95. She anticipates a 7.5% return on her investments. Allison does not expect to receive any Social Security retirement benefits.

Calculate Allisons annual retirement needs in todays dollars.

a. $29,000

b. $55,000

c. $66,500

d. $95,000