Caleb prepared the following hypothetical retirement savings example to deliver while he will be meeting with his company's new recruits.

Moonnis24 year old and the expected retirement age is 68 and her life expectancy is 93 years. Her current annual expenditure is $30,000.The expected inflation rate of current expenditures until retirement and the expected return on investment are 3% and 8%, respectively.Moonnassumes her consumption expenditures will increase with the rate of inflation, 3%, until she retires. Upon retiring she will have end-of-year expenditures equal to her consumption expenditure at age 68.

Caleb calculated the minimum amount thatMoonn must accumulate by age 68 in order to fund her retirement isclosestto:

A. $1,552,000

B. $928,000

C. $1,176,000