Suppose that you plan on working another twenty years. You are currently making $120,000 and anticipate a 3% raise each year. In your first year of retirement, you would like to have an income that is 25% of your final year of salary and would like this amount to grow by 3% each year of retirement. You would like your retirement savings to last for twenty years, at which point the balance of your account should be close to zero. The discount rate is the rate at which your retirement account earns interest. For each of the following discount rates, what percent of your salary do you need to save? Savings rate Discount rate Savings rate 6.00% 10.00% Discount rate 6% 7% 8% Year Retirement account Cash flow $120,000.00 9%