MARIA TIBERINI PLANS TO RETIRE SOON, ON HER 65TH BIRTHDAY. SHE WOND...

9. Maria Tiberini plans to retire soon, on her 65

^th

birthday. She wonders if she has enough money to support her retirement. Since she had a heart attack 3 years ago, she does not expect she would live longer than 85 years old. She plans to spend $40,000 in the first year of retirement. She expects her annual expenses will increase at the rate of inflation, expected to be 2% per year. Assume that all expenses are paid at the beginning of each year, how much money does she need at 65 to support her post-retirement expenses? Assume that the rate of interest is 6%. A) $458,797 B) $536,675 C) $539,386 D) $543,613 E) $568,875