Assume Mr Bo Fishback, CEO and co-founder of Zaarly, is currently 40 years old and wants to retire by the time he is 55. He expects to live until he is 85, and wants to be able to withdraw $100,000 p.a. every year in retirement. The average inflation rate is expected to be 2.5%.

c)Mr Fishback is an experienced entrepreneur and intends to actively manage his savings until he retires. He believes he can achieve a return of 15% p.a. on his retirement savings over this time. If this is the case, how much would he need to invest each year? (3 marks)