Answer:
Option d)$401,447.24
Explanation:
We are given that as part of your retirement plan, you want to set up an annuity in which a regular payment of $35,000 is made at the end of each year at rate of 6% compounded annually for 20 years
So first of all we need to find the future value of annuity using the formula as shown below :
![FV= p([(1+(r)/(n))^((n)(t))-1)])/((r)/(n))](https://img.qammunity.org/2020/formulas/mathematics/middle-school/8pi9lczz1sx4vr6zcpnp7eztafbgebq0y4.png)
Here, FV = future value of annuity
p = $35000 (annual deposit)
r is rate = 6% = 0.06
n = number of compounding = 1 ( as we are compounding annually )
t = number of years = 20
So plugging in all the values in the formula , we get
![FV= 35000([(1+(0.06)/(1))^((1)(20))-1)])/((0.06)/(1))](https://img.qammunity.org/2020/formulas/mathematics/middle-school/ggfwgzpf4ttcpgtf3hxpdvrouxuykk3dyp.png)
Simplifying further , we get
![FV= 35000([(1+0.06)^(20)-1)])/(0.06)](https://img.qammunity.org/2020/formulas/mathematics/middle-school/mplpmdyrauvbptxlax1hhxl9jg1z352w1u.png)
Plugging in the given values in the calculator , we get
FV = $ 1287495.69
So far we have got the Total amount for annuity , from here we need to use the concept of compound interest and find the principal amount to be deposited to get the required total amount of $ 1287495.69
The formula for compound interest when compounded annually is given by:

Here A = 1287495.69 (Total amount required)
P = ( principal amount to be deposited to meet the required total amount )
r = 6% = 0.06
t = 20
So plugging in all the known values in the formula , we get

simplifying further, we get

so required amount to be deposited is given by :
P = $401,447.24
Hope it was helpful !:)