According to financial planners, the average retiree requires approximately 70% of their last years working salary each year to live comfortably in retirement. Assume that you want to earn a fixed amount of interest each year in retirement. Your goal is to spend only the interest and still live comfortably; thus, you will be able to spend the same amount of money each year forever. Assume you retire at age 66 and can earn a 6% return on your retirement savings. How much must you have saved to live only off the interest?

4. Suppose you live through age 90. How much money will you be able to bequeath (i.e. pass on in your will)?