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(Solved): Marc Plans To Save $10,000 Each Year, Starting Next Year, For 30 Years Then Retire. He Will Use His ...

Marc plans to save $10,000 each year, starting next year, for 30 years then retire. He will use his total saving to buy a 35-year annuity as supplemental income, on top of the social security income. Assuming he can earn 8% interest rate before retiring and 3.75% interest rate after retiring . With his saving, how much annual income can this 35-year annuity provide if he receives the first payment at the end of the year he retires

a. $58,650

b. $52,400

c. $61,350

d. $55,000

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