You Have Determined That You Will Need to Accumulate $1,000,000

You have determined that you will need to accumulate $1,000,000 in your retirement account in order to cover your inflation-adjusted shortfall.Which of the following is closest to the amount of money you would need to put into a tax-deferred retirement account every year if you plan on retiring in 40 years? Assume an 8% average return on this account,and that it is empty today.

A) $1,458
B) $3,860
C) $5,957
D) $8,444

Correct Answer:

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