6. You are currently 40 years old with $125,000 of savings. You want to retire at the age of 65 with a monthly income of $5,000. You expect to live to the age of 90. If you can earn 8%, compounded monthly, from today until you die:

How much do you need to save each month for the next 25 years?

If you already have more than you need, how much can you leave for your kids when you die?

7. Kathy is currently 25 years old and she has saved $2,000. She wants to save $500 per month for the next 10 years, at which time she will buy a BMW for $50,000. She wants to retire at the age of 65 with a monthly income of $6,000. She expects to live to 95 and then leave $1,000,000 as a bequest. If Kathy can earn 8%, compounded monthly, on her savings both before and after retirement, how much should Kathy save every month between the ages of 35 and 65?($273)

What if Kathy can only save $250 per month for the next ten years and she has $2,000 of debt which must be paid off before she can start to save. She will use debt to make up any shortfall on the car. Now, how much should she save each month between 35 & 65?