Suppose my current age is 25 years.

I hope to retire at the age of 60 years.

I would like to have a retirement fund from which I can draw an income of $150,000 per year as an interest. (12500 per month.)

Constant APR is 3.5%

Hence my monthly deposit is 5245.71

a) Consider the savings plan you developed in the discussion. How much did you determine you need to save each month? You do not need to repeat those calculations here, but just re-state your conclusion.

b) With the 3.5% account, the monthly payments might be difficult to maintain, so you decide to wait 5 more years until you retire. What are your monthly payments with this plan?

c) Suppose you can find an account that earns interest at 4% interest instead. How does that change your monthly payments? (You choose how long until you retire in this question.)

d) State your conclusions and interpretations of these calculations.