单选题

For planning purposes, an individual wants to be able to spend €80,000 per year, at the end of each year, for an anticipated 25 years in retirement. In order to fund this retirement account, he will make annual deposits of €6,608 at the end of each of his working years. What is the minimum number of such deposits he will need to make to fund his desired retirement? Use 6% interest compounded annually for all calculations.

A、 29 payments
B、 40 payments
C、 51 payments

【正确答案】 B

【答案解析】

B is correct. Using a financial calculator, first calculate the needed funds at retirement:
N = 25, I/Y = 6, PMT = 80,000, FV = O; calculate PV to be 1,022,668.
Then use 1,022,668 as the FV of the accumulation phase annuity as per:
I/Y = 6, PV = O, PMT = 6,608, FV = 1,022,668; calculate N. N is 40.