Suzie is retiring today. How much money does she need to have in her retirement savings account today if she wishes to withdraw $45,000 a year for 18 years? The withdrawals will be at annual frequency and the first withdrawal will be one year from now. Suzie expects to earn a rate of return of 5 percent per year.

a.

$403,569.81

b.

$526,031.41

c.

$426,580.50

d.

$410,784.56

e.

$385,160.98