Question 5 6 pts James is planning for his retirement. He is currently 37 and plans to retire in 25 years, at age 62. He expects then to live an additional 35 years, until age 97. He expects inflation to average 3% per year. He believes he can earn a nominal return on his retirement investments of 8% per year. Based on his assumptions about investment returns, inflation and Social Security. and his desired Wage Replacement Rate, he believes he will need to accumulate $6,000,000 in nominal terms by the day of his retirement in order to produce enough income to achieve his retirement income goal. In other words, present value of retirement annuity is $6,000,000. Based on the Capital Preservation Method described in the textbook, how much does he need to contribute to his retirement fund at the end of each year to accumulate enough by the day he retires? O $29,167 $87,623 $103,977 $11,240 Question 5 6 pts James is planning for his retirement. He is currently 37 and plans to retire in 25 years, at age 62. He expects then to live an additional 35 years, until age 97. He expects inflation to average 3% per year. He believes he can earn a nominal return on his retirement investments of 8% per year. Based on his assumptions about investment returns, inflation and Social Security. and his desired Wage Replacement Rate, he believes he will need to accumulate $6,000,000 in nominal terms by the day of his retirement in order to produce enough income to achieve his retirement income goal. In other words, present value of retirement annuity is $6,000,000. Based on the Capital Preservation Method described in the textbook, how much does he need to contribute to his retirement fund at the end of each year to accumulate enough by the day he retires? O $29,167 $87,623 $103,977 $11,240