You plan to retire at age 65. You want to withdraw $100,000 from your savings account every year starting on your 65 th birthday. You expect to make your final withdrawal on your

84^th birthday. How much must you have accumulated by your 65 th birthday in order to support your desired withdrawals if you earn 3% on your savings?

$1,090,095.56

B.

$1,587,747.49

C.

$1,532,379.91

D.

$1,432,379.91

E.

$1,475,351.31

What is the present value of a $50 perpetuity if interest rates are 7%?

$3.50

B.

$18.12

C.

$714.29

D.

$1.21

E.

$593.23