Choose the best answer

David is 27 years old and is considering a monthly savings plan for his retirement. He plans to retire at 67 and wants to be able to take $10,000 per month beginning on his 67th birthday. He expects to live to 92 (25 years from retirement). Mr. David believes he can earn 8% during the years he is still working, and then will take a more conservative approach once he retires with an expected return of 6%. He would also like to be able to fund an endowment at his alma mater, UAlbany, in the amount of $1.5 million on his 92nd birthday. To be able to meet his goals, the monthly contributions Mr. David needs to make beginning next month is closest to:

*N.B. Read the problem carefully and construct a timeline to complete.

		a) $540.82.
		b) $543.05.
		c) $859.35.