Tina would like to withdraw an annual salary of $35,756 from an account paying 2.2% compounded annually for 35 years once she retires. Given this information, determine the amount needed in her account in order for her to reach her goal. Round to the nearest cent.

Treat the withdrawals as an ordinary annuity, with one withdrawal at the end of each year. The present value is $35,756 × [1 − (1.022)^−35] ÷ 0.022, which is about $866,442.02. Tina needs approximately $866,442.02 in the account, which is choice B.

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