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Someday you hope to retire and have $ 2 0 0 , 0 0 0 of income a year in today s dollars. You want

Someday you hope to retire and have $200,000 of income a year in todays dollars. You want to fund 25 years of retirement. During retirement, your investments will earn 4% annually. In the 30 years before retirement, your investments will earn 9% annually. The estimated inflation rate over the entire period is 3% annually. Assuming all payments are at the end of the period and that all numbers are given in nominal terms unless otherwise stated. How much do you have to save annually during the 30 years before retirement to achieve your goal?

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