Xander Schauffele wishes to save money to provide for his retirement in 25 years. Beginning one month from now, he will begin depositing a fixed amount each month for the next 25 years into a retirement savings account that will earn 6% compounded monthly. Then, one year after making his final deposit, he will want to withdraw $80,200 annually for 12 years for his retirement. The fund will continue to earn 6% compounded monthly. How much should his monthly deposits be so that he will have enough money to purchase the annuity that pays $80,200 a year for 12 years when he retires?

Multiple Choice

$3,208.00

$1,009.47

$2,220.81Incorrect

$961.40