Mr. Jones intends to retire in 20 years at the age of 65. As yet he has not provided for retirement income, and he wants to set up a periodic savings plan to do this. If he makes equal annual payments into a savings account that pays 4 percent interest per year, how large must his payments be to ensure that after retirement he will be able to draw $30,000 per year from this account until he is 80? Here is what I'm thinking the answer is: He is 45 yrs. Old, wants to retire in 20 years. He wants to draw 30k/year for 15 years. To draw that amount, he needs a total of 450,000 4% interest on 450,000 = 18,000 450,000 18,000 = 432,000/20years = 21,600 savings per year Am I on the right track?