Assume you're now 21 years old and will start working as soon as you graduate from college. You plan to start saving for your retirement on your 25th birthday and retire in your 65th birthday (40 years). After retirement you expect to live at least until you're 85 years old. You wish to be able to withdraw $54000 every year from the time you retire until you are 85 years old (20 years). The average inflation rate is likely to be 5%.

What is the dollar amount you need to invest every year, starting at age 26 and ending at age 65 (40 years), to reach the target lump sum at age 65?

Please do not reply with $8239.07 as it is incorrect. How can $8200 = almost $6 million in 40 years? Remember the $6 million already has the inflation rate and interest built into it.

Please help. The factor values have to be rounded to 4 decimal places and the answer rounded to two decimal places. Thank you so much to everyone assisting so far!!!

Assume you are now 21 years old and will start working as soon as you graduate from college. You plan to start saving for your retirement on your 25 th birthday and retire on your 65 th birthday. After retirement, you expect to live at least until you are 85 . You wish to be able to withdraw $54,000 (in today's dollars) every year from the time of your retirement until you are 85 years old (i.e., for 20 years). The average inflation rate is likely to be 5 percent. Problem 6.42(a) Your answer is correct. Calculate the lump sum you need to have accumulated at age 65 to be able to draw the desired income. Assume that the annual return on your investments is likely to be 10 percent. (Round answer to 2 decimal places, e.g. 15.25. Round intermediate value to 3 decimal places, eg. 359400.312. Do not round factor values.) Lump sum amount accumulated at age 65 Your answer is incorrect. What is the dollar amount you need to invest every year, starting at age 26 and ending at age 65 (i.e., for 40 years), to reach the target lump sum at age 65 ? (Round factor values to 4 decimal places, e.g. 1.5212 and final answer to 2 decimal places, e.g. 1,525.12.) Investment needed to reach the target