You retire at age 65 with an accumulation of $2.5 million to finance your retirement days. You expect to live 20 more years (until age 85). If the nominal interest rate is 12% annually and the long run expected inflation rate is 6.67%, the amount you can spend annually in real terms is closest to:

Select one:

a. $200,606

b. $75,606

c. $197,987

d. $72,987