Dave and Michelle plan to retire in 32 years. They both plan for a fruitful retirement of 25 years. The funds needed on the first day of retirement to fully fund their retirement spending are determined by calculating the present value of an annuity due. This is also referred to as the Capital Balance needed on the first day of retirement and has been calculated for you. It is $2,415,889 in future dollars of the first year of retirement.

They expect to earn 7% on their investments both before and during retirement. Inflation is expected to be 5%. How much must they save at the end of each year to have sufficient funds, not only to meet their retirement spending needs, but also to have funds remaining at their assumed life expectancy equal in purchasing power to the original capital balance needed at the beginning of their retirement?