Q5. Your client needs $80,000 each year (in dollar today) 15 years from now for a retirement period of 20 years. The rate of inflation is 4% for the next 15 years compounded annually. There is no social security during retirement. Ignore the rate of inflation and the rate of investment beyond year 15. There is an investment opportunity of 7% (tax exempt) compounded monthly. On a monthly basis, how much should the client deposit each month to achieve this goal before income tax if the income tax rate of the client is 20%? The answer is closer to:

a. Less than $9000 b. 9091 c. $11363 d. More than $11425 e. None of the above