Juliva expects to retire at 35. She decided that she would like to retire with enough savings to withdraw $5,500 a month for 25 years after her retirement. Knowing that she will be conservative with her pension fund after her retirement, she believes that from her retirement date she will earn at a rate of 4.5% per year from her retirement date onwards.

Required: a) How much money does Isabella need when she retires?

Juliva asks how much she needs to save per month to have that amount (calculated in (a)) by the time she retires. She currently has about $15,000 in her savings account, but she knows it won't be enough. She believes she can earn a 6.5% after-tax return on her monthly savings.

Required: b) How much Isabella needs to save each month for the next 35 years to reach her goal