Today is Dec. 31, 2020. David is planning to retire in 40 years from today. He believes he needs to save some money to support his living for at least 20 years, i.e., 2061 through 2080, after his retirement. David estimates that he will need $50,000 each year from Jan. 1, 2061 to Dec. 31, 2080. Assume that the interest rate is 10% and will be constant over time. Determine how much he needs to save by the end of 2060.

To answer this question, use the information provided in Question 2. Suppose that David wants to save money starting from one year from today. How much at the end of each year from 20212060 does he need to save? (Hint: compute the present value of the funds needed by the end of 2060 and then find the annual payment for next 40 years)