Gabriel Lombardo just retired today. He is going to take out a withdrawal of $150,000 today to fund his quest for extreme sports for 3 years. Then he will make 30 annual unequal withdrawals from his savings with the first withdrawal occurring at t=2. He wants each withdrawal to have the same purchasing power as $70,000 has today so the withdrawals need to grow at a constant rate of 3% to compensate for expected inflation per year. His savings account earns 9% per year. How much needs to be in his savings account today in order for him to be able to withdraw $150,000 today and make 30 additional withdrawals (from t=2 through t=31)? Round all calculations to the nearest dollar.

Please solve using TI-84!

a. $1,125,232

b. $1,259,406

c. $1,077,781

d. $1,143,928

e. $777,781