If you are a student you will probably not retire for many years. Your retirement income, then, is an annuity that wont begin until you retire.

You are 20 years old and you would like to retire in 40 years. You would like (plan) to receive $10,000 at the end of each month of the next 35 years after you have retired (you assume you will die with 95).

Assume you can invest your money today at 8% until retirement and further assume that you will earn 6% during retirement. Assume monthly compounding!

How much money do you need at the point of retirement?

How much money would you need to invest today?

How much money would you need to invest each month to reach your goal?

Redo a) to c) assuming annual compounding!