How much money do you need to live comfortably each year? Everyone could have

different answer here. So, let's make it 1million here, and this will be your annual

income at retirement with this same purchasing power.

1) Let's say you plan to retire in the next 23 years, and this "annual income" needs to cover for the inflation by the time you retire. Inflation happens to be on average about 3.00% per year. How much will your annual income be at the beginning of your retirement? This is what you will be needing each year at retirement. Hint: Use Future Value of

?

Jan 1st of retirement year I Jan 1st of retirement year 2 Jan 1st of retirement year 20 1st Payment PMT 2nd Payment PMT, Last Payment PMT 19