III. Question $3$

Use the following information regarding your retirement planning:

$$ You plan to work $($and save$)$ for $40$ years, then retire $($and spend money from your

retirement account$)$ for $25$ years. After these $65$ years, you expect that your retirement

saving account will have $$0$ left.

$$ You plan to save $$3,500$ in year $1,$ and you will increase this amount by $4\%$ a year

$$ You want your retirement spending to increase by $2\mathrm{.}5\%$ per year

$$ You expect to earn a rate of return of $7\%$ during your working years and $4\mathrm{.}75\%$ during

retirement

To solve this problem, find the amount that you spend your first year of retirement. Solve

this problem in the Problem $3$ sheet $($which is blank$)$ of the Exam Upload Excel file.