Anna just turned 55. She is planning to retire in 10 years, and she currently has $500,00 in her 401k fund. She assumes that she will live 20 years past her retirement age. During each of these 20 years, she desires to withdraw $100,000 from her retirement fund. If the interest rate is 5% annually, how much will Anna have to save per year for the next 10 years (from 55 to 64)? Assume that the first deposit to her retirement fund will be today, followed by nine more annual deposits, and that the annual withdrawals from age 65 will occur at the beginning of each year.

Use this sheet for the answer please.

1Annual desired pension payout 2 Annual payment 3 Interest rate 100,000 5% Account balance, beginning of ear Deposit or withdrawal beginning of year Interest earned during Total in account end of year Your age 500,000 56 57 58 59 60 61 62 63 64 65 8 10 12 13 14 15 16 17 18 19 20 21 67 68 69 70 71 72 73 74 75 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 23 24 25 26 58 10 1159 12 13 14 15 60 61 62 63 8 (100,000 (100,000) 65 17 18 19 67 (100,000) (100,000) 69 70 71 72 73 74 75 76 (100,000) (100,000) (100,000) (100,000) (100,000) (100,000) (100,000) 24 3 78 79 80 81 82 83 (100,000) (100,000) (100,000) (100,000) (100,000) (100,000) 0 0 37