Refer to Example 8-9. Sara has decided that saving more than 12% of her annual salary was

Question:

Refer to Example 8-9. Sara has decided that saving more than 12% of her annual salary was unrealistic. She is considering postponing her retirement until 2027, but still wishes to have $500,000 (in 1997 spending power) at that time. Determine what percentage of her annual salary Sara will have to save to meet her objective.