Emely earns $⁢57,600 per year and wants to retire with 90% of her preretirement income. Based on the 4% rule, how much should Emely save by the time she retires to meet this goal?

Emely’s goal is 90% of $57,600, which is $57,600 × 0.90 = $51,840 per year. Under the 4% rule, that annual income is 4% of her savings, so she needs $51,840 ÷ 0.04 = $1,296,000. The correct choice is $1,296,000.

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