Barry Cuda is planning on retiring in 40 years and feels that his annual retirement benefit should

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Question:

Barry Cuda is planning on retiring in 40 years and feels that his annual retirement benefit should be around $85,000 in today's dollars. Barry will assume an annual rate of inflation of 4%. Currently, Barry has $12,500 in an IRA which has been earning 8%. Barry feels that his account should continue earning 8%. Barry plans on depositing $5,000 annually into this account. Barry also has $12,000 currently invested in the stock market. Six years ago, Barry opened this account with $6,000. Barry also feels that this rate of growth should continue well into the future. In 20 years, a single sum of $300,000 will be given to Barry from a trust set up by his grandfather. Barry plans to invest this money at 8%. If Barry plans on living for 30 years after his retirement, how much in additional funds (earning 8%) will Barry need to deposit annually in order to reach his goal? Upon retirement, all funds will earn 8%

O $1,367

O $1,978

O $4.979

O $5,724