Steven, age 43, earns $80,000 annually; and his wage replacement ratio has been determined to be 80%.He expects inflation will average 3% for his entire life expectancy.He expects to work until 68, and live until 90.He anticipates an 8% return on his investments.Additionally, Social Security Administration has notified him that his annual retirement benefit, in today's dollars will be $26,000.

Using the capital needs / annuity method, calculate how much capital Steven will need to be able to retire at age 68.

$1,112,863.56

$836,000

$1,760,000

$1,061,342.08