2) If today is your 35th birthday, and you decide, starting next year and on every birthday up to and including your 65th birthday (30 years total), you will invest the same amount. How much must you invest annually to meet the retirement savings goal you have set in problem above? Again the fair interest rate is 7% annually.

Above problem for reference : (1) You believe you will need $125,000 annually to live comfortably while retired. You plan on retiring when you are 65 and will begin withdrawing funds from your retirement account on your 66^th birthday. If you expect to need 30 years of retirement income how much money will you need at retirement (when you are 65) to meet this goal assuming the fair interest rate is 7%?

Solution for problem 1:

C69 X =B66*((1-(1+B67)^-B68)/B67) A 63 64 Prblm 17 65 66 Annual payment 67 Interest rate 68 No. of years 69 Present value 125,000.00 7% 30 P*((1-(1+r)^-n)/r) $ 1,551,130.15