John Adams plans to retire at the age of $65.$ He wants an annual income

of $$75,000$ per year. He believes that he will live to be $85.$ He will draw the

money at the beginning of each year. How much money will he need

when he retires to support his $$75,000$ annual lifestyle if he will average

$10$ percent per year on his retirement account? John is currently $40$ years

of age. How much does he have to place at the beginning of each year

into a retirement account earning $12$ percent per year to have the amount

of money he needs to retire at age $65?$

Money Needed When John Retires $=$ $$561,289\mathrm{.}52$; Annual payment $=$

$$5,987\mathrm{.}86$

Money Needed When John Retires $=$ $$652,970\mathrm{.}81$; Annual payment $=$

$$5,347\mathrm{.}64$

Money Needed When John Retires $=$ $$470,588\mathrm{.}35$; Annual payment $=$

$$6,288\mathrm{.}23$

Money Needed When John Retires $=$ $$702,369\mathrm{.}01$; Annual payment $=$

$$4,703\mathrm{.}34$