Jan and Tim Sherman want to retire when Jan turns 61 years of age and Tim will be 65. They want an income of $56,000 payable at the beginning of each year and they want to be able to maintain that level of income until Jan turns 90 years of age. Assuming an interest rate of 7.5% compounding annually throughout their retirement, how much must the they save by the time they retire in order to achieve their goal (ignore inflation in your calculations)? $704,109 $801,698 $821,131 $829,843 4 Daniel wants to retire when he is 70 years old. He estimates that he will need $32,000 before tax at the beginning of each year to sustain his desired lifestyle. He also assumes that he will live until he is 90 years old. He believes he can generate an 8% return annually on his investments and he wants to draw on his capital during retirement. Ignoring inflation taxes and income from other sources, how much does Daniel need to accumulate by the time that he is ready to begin his retirement? $518,794 $339,315 $368,920 $389,069