Mike and Maria are 44 years old. They would like to retire when Mike is age 60. They want to plan on $100,000 of retirement income in today's dollars. They expect to receive Social Security and Mike has a pension (information below). They would like to plan on funding potential retirement expenditures until they turn age 95 and would like to maintain the same level of spending, even if Mike or Maria died early.

Mike met the requirements for the MLB minimum pension of $34,000 per year, which is what he expects to receive. This pension begins at age 62 and the amount is fixed for life (both his and his spouse's life). It is not inflation adjusted from today or during retirement. Mike expects his Social Security benefits will equal $30,000 in today's dollars at full retirement age, which is age 67. Maria does not have 40 quarters of Social Security coverage.

Their son, Michael, is currently 17.They want Michael to attend a college for learning, as well as baseball. As mentioned, they expect to fund $15,000 per year for five years in today's dollars for Michael's education. Tuition has been increasing at a 7 percent rate, which is expected to continue indefinitely.

Mike and Maria have $5,000 in cash, $25,000 in savings, and $120,000 in investment assets.

Inflation is expected to be 3.0% annually. Required rate of return = 9%.

***Mikewantstosetaside$75,000forMichael'seducation.Ifhesetasideallofhisother cashandinvestableassetsforthepurposeofretirement,approximatelyhowmuchwouldheneedtosaveeveryyeartofundhisretirement?***

(note...the answer will be one of these: $27,000, $32,000, $36,000, $43,000). PLEASE show work or at least the inputs for your financial calculator.