3. You are 21 years old and plan to retire in 34 years. After you retire you expect to live for 35 years. You want a fixed retirement income that has the same purchasing power at the time you retire as $100,000 has today (you realize that the real value of your retirement income will decline year by year after you retire). Your retirement income will begin the day you retire, 34 years from today. Inflation is expected to be 3 percent per year from today forward, you currently have $10,000 saved up, and you expect to earn a nominal annual return on your savings of 10 percent per year. To the nearest dollar, how much must you save during each of the next 34 years (with deposits being made at the end of each year) to meet your retirement goal? HINT: First calculate the amount that you want to receive each year during retirement. This is $100,000(1.03)34 OR PV=100,000, n=34, i-3%. This becomes the PMT for each year during retirement (35 years in retirement, receiving PMT at the BEG of each year). Calculate the present value of this payment stream as of the day you retire. Then enter this number as FV (positive), the amount you have saved as PV (negative), n=34 and compute payment