John plans to retire in 35 years and believes that he will have 20 good years of retirement and believes that if he can withdraw $90,000 at the end of each year, he can enjoy his retirement. Assume that a reasonable rate of interest for Frank for all scenarios presented below is 8% per year. This is an annual rate, review each individual question for more specifics on compounding periods per year. Because John is planning ahead, the first withdrawal will not take place until one year after he retires. he wants to make equal annual deposits into his account for his retirement fund. This is an annual rate, review each individual question for more specifics on compounding periods per year.

If he starts making these deposits in one year and makes his last deposit on the day he retires, what amount must he deposit annually to be able to make the desired withdrawals at retirement?

A1) First: Amount needed at retirement

A2) The amount Frank must save each year (beginning at the end of the first year) to fund his retirement is

A3) If Frank decides to make monthly deposits for 35 to reach his same retirement goal, how much must Frank start depositing one month from today