Question
. Krista just turned 44 and is beginning to plan for her retirement. She would like to make level annual contributions of X to a
. Krista just turned 44 and is beginning to plan for her retirement. She would like to make level annual contributions of X to a retirement fund starting on her 45th birthday with the last contribution on her 69th birthday. These contributions should fund annual retirement checks beginning with $50,000 on the 70th birthday, and increasing by $1,000 each year until her last retirement check issued on her 84th birthday. The fund will earn interest at an effective annual interest rate of 10%. Determine which of the following is closest to the minimum X needed to ensure that Krista retirement goals are met. (A) 338 (B) 368 (C) 398 (D) 428 (E) 458
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