You just turned 23 years old and want to retire when you turn 65. You expect to live for 25 years after retirement and want to withdraw $90,000 per year in retirement, starting on your 65th birthday. You expect to earn a return of 8% on your investments every year. What is the total present value (as of your 65th birthday) of the withdrawals you expect to make in retirement? You want to save a constant amount every year. How much money should you save each year if you make the first deposit now and the last one one year before you turn 65?

Q: How much do you need to contribute each year to fund your retirement?

A: Step-1:Calculate the present value at the age of 65 of withdrawl of cash after retirement to 100th…

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A:

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A:

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Q: save

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A: This is typical problem of present value of growing ANNUITY.

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