Mr. Wilks is 30 years old today and wants to set aside an equal amount at the end of ech of the next 30 years into a retirement fund earning 10% p.a. so that he can retire at age 60. At retirement, the funds will be transferred to an investment account earning 6% p.a. He expects to live to age 80 and wants to be able to withdraw $375,000 per year from the account on his 61st through 80th birthdays. He also wants to leave $550,000 as an inheritance to his children at age 80.
How much will he need to save in his retirement account per year to achieve these objectives?