Today is Steves 35th birthday. He currently has no retirement savings. He plans to start a retirement account that will earn 8% interest per year.

Hell make annual deposits into the account, with the first deposit made today and the last deposit made on his 67th birthday. Thereafter, he will retire and have no income from employment.

On his 68th birthday, he will withdraw an amount equal to 80% of the employment income that he earned during his last year of employment. Each year thereafter, his withdrawals will grow by 3% per year to keep up with inflation. His last withdrawal will occur on his 95th birthday.

Steve currently earns $125,000 per year from employment, and he believes his income will grow by 2% per year. He will structure his deposits so that they are a constant percentage of his annual income. His last year of employment will be the year of his last deposit (67th birthday).

What percentage of his annual income from employment does Steve need to deposit each year in order to fully fund his retirement?