Required annuity payments Retirement income today Years to retirement Years of retirement B $35,000 10 Inflation rate 25 6.00% Savings $60,000 Rate of return 9.00% Calculate value of savings in 10 years: Formulas Savings at t=10 #N/A Calculate value of fixed retirement income in 10 years: Retirement income at t = 10 #N/A Calculate value of 25 beginning-of-year retirement payments at t=10: Retirement payments at t = 10 #N/A Calculate net amount needed at t = 10: Value of retirement payments #N/A Value of savings #N/A Net amount needed #N/A Calculate annual savings needed for next 10 years: Annual savings needed for retirement #N/A