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Suppose that you are currently 2 1 years old and expect to retire from work when you are 6 5 years old. Once retired, you
Suppose that you are currently years old and expect to retire from work when you are years old. Once retired, you expect to live until you are years old. You anticipate that you will need $ per year when retired to maintain your standard of living. Assuming that you can save at an interest rate of while working and an interest rate of while retired, determine the following values:
A The amount you will need to save by the time you retire to meet your needs in retirement and
B The annual amount that you will need to save each year while you are working to have enough saved by the time you retire
Note: For the purposes of this question you can assume that all cash flows eg deposits and withdrawals from the retirement savings account occur at the end of each year.
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