Q3. As a bright 24-year-old student, you expect your next year salary (net of taxes) to be $60,000. You forecast that this salary will increase at a rate of 3% per year.You are planning to retire at the age of 65.

a. You are planning to save 5% of your salary each year, and place these savings in investments that yield 8%.How much will have you have saved for you retirement after 40 years of hard work? Note: Please, use 8% also as the discount rate.

b. During the 20 years of retirement, you are planning to spend equal amounts of your savings each year.How much can you spend each year?

I don't know how to solve question a. It said saving 5% then place these savings in investments that yield 8%. The salary will increase 3%/year means the saving also, then increase another 8%. I don't know what formula should fit in