Q1 - You (hypothetically) plan to retire at the age of 72. Assume youll live another 25 years beyond that just to be safe. How much will you need to have saved at 72 if you want to spend $100,000 per year for the next 25 years? I want you to set the problem up as you would in a spreadsheet and provide calculations for the first three years. Youll need the money right away. So, assume an annuity due. And for simplicity, use 5% as your discount rate. Show all your work!

Q2 Now use the Present Value of an Annuity formula to provide the complete calculation to the problem presented in Question 1. Again, assume an annuity due and a 5% discount rate.

Q3 - You have forty work years before you hit 72, hypothetically. How much will you need to save MONTHLY to reach the saving target above. This time simply use the Future Value of an Annuity formula. In this case, youll have to save up the money first. So, assume an ordinary annuity. Again use 5% as your compounding rate.