Fill in answers:

Age now: __22___

Age at retirement:

__45__

Age want to receive retirement income until : _90____

Investment rate: __5%___

Inflation rate:

_3.5%___

Current year's salary: ____50,000_________

Amount you have already saved for retirement: ___1000_____

Amount you want to leave to heirs: ___5000_______

Now lets assume you are 10 years into saving for your retirement, so 10 years older than what you chose as your age now and assume you earned 2% less than expected on your investments and you ended up putting away only half as much as you assumed above. Now calculate the equal annual amount you would need to save every year to still save to the amount in part 3, assuming you can now earn the assumed investment rate.