QUESTION $4$

Steve and Roslyn are retiring together today and they wish to receive $$40,000$ of income $($in the equivalent of today's dollars$)$ at the beginning of each year from their portfolio. They assume inflation will be $4\%$ and they expect to realize an after tax return of $8\%.$ Based on life expectancies, they estimate their retirement period to be about $30$ years. They want to know how much they should have in their fund today.

$$698,457\mathrm{.}24$

$$728,299\mathrm{.}37$

$$731,894\mathrm{.}20$

$$813,529\mathrm{.}88.$