John would like to save $1,500,000 by the time he retires in 30 years and believes he can earn an annual return of 8%. How much does he need to invest each year to achieve his goal?
A) $13,242
B) $18,900
C) $20,518
D) none of the above
Answer: A
Explanation: A) $1,500,000 / FVIF 113.28 = $13,242
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