Q10. Assume that you are 30 years old today, and that you are planning on retirement at age 65. Your current annual salary is $50,000, and you expect your salary to increase at a rate of 2 percent annually as long as you work. To save for your retirement, you plan on making annual contributions to a retirement account. Your first contribution will be made on your 31st birthday and will be a constant percentage of this year's salary. Likewise, you expect to deposit a constant percentage of your salary each year until you reach age 65. Assume that the interest rate is 7 percent. [6 marks]

a) You expect to have $200,000 in your retirement account at your retirement (age 65). What percentage of your salary must you save each year?