assume that today is your 30th birthday and you have €690813 in your savings account. Every quarter you will reinforce your savings account with new deposits that grow 1% per quarter, start one year from now and end when you turn 75 years old. The last amount deposited is €5852. Assume that your savings earn an effective annual rate of 9.2%.

You will use the entirety of your savings to receive a growing annuity that increases your purchasing power by 2% every year. The first annual cash-flow will be received when you turn 80 years old, and the last when you turn 96 years old.

Assume an annual inflation of 2.6%.


Compute the amount received on your 80th birthday.