Assume that individual has accumulated $125,000 in a retirement fund as of today. They want to save enough additional funds to be able to withdraw $50,000 per year (in today's purchasing power) for 30 years of possible retirement. The fund they invest in (their current investment fund) is expected to earn a 6% real AR during their savings years. Assume that the individual is 25 years from retirement. At retirement the individual is going to switch the retirement funds into a less risky investment earning 3.5% AR. Find the level of the annual additional savings (in current dollars) that will be required to meet their expected retirement income goal.

Please show all work without an excel sheet, thank you!