Comprehensive Given:
current income $50,000
income needed in retirement $45,000
current age 35
age at retirement 70
age at death 90
investment return prior to retirement 7%
investment return during retirement 4%
a) Calculate the nest-egg needed at retirement. Assume the annual income amount will be taken at the beginning of each year during retirement.
b) How much must this individual save each year in order to meet the retirement-savings goal? Assume the individual will save an equal amount annually.