1. Imagine you are 30 years old and want to save enough to retire at age 60. During retirement, you plan to withdraw $50,000 at the start of each year from age 60 until age 80 (20 years). You will earn 3% annually on your savings during retirement. You will earn 6% annually before retirement.
2. What is the savings goal, i.e. how much do you need in the account the day you retire?
3. What annual payments would you need to make (at the end of each year) while you are working in order to reach the goal from part A?
4. If you would also like to give Queens College an endowment of $100,000 upon your death at age 80, what is the new savings goal?
5. How would you reach the goal from part C with annual payments at the end of each year?