Roy and Barbara are near retirement. They have a joint lifeexpectancy of 25 years in retirement. Barbara anticipates theirannual income in retirement will need to increase each year at therate of inflation, which they assume is 4%. Based on the assumptionthat their first year retirement need, beginning on the first dayof retirement, for annual income will be $85,000, of which theyhave $37,500 available from other sources, and an annual after-taxrate of return of 6.5%, calculate the total amount that needs to bein place when Roy and Barbara begin their retirement.