You are

$25$

$$years old and just graduated with an MBA degree. Compute how much you must save annually to reach your financial goals. Here are your assumptions:

$$

$$You hope to have a child in the next three years. For your calculations, you assume that at time

$=$

$21($

age

$=$

$46)$

$,$

$$you will need to make the first college payment. You will pay for four years tuition. Currently, the tuition is $

$20$

$,$

$000$

$,$

$$and you expect it to increase with inflation at

$3$

$\%$

$$per year. You want to change your car in

$3$

$$years

$($

time

$=$

$3$

$,$

$$age

$=$

$28)$

$,$

$$and you must have $

$10$

$,$

$000$

$$for the downpayment.

$$

$$You want to buy a house in

$10$

$$years and have $

$100$

$,$

$000$

$$for the downpayment.

$$

$$You also want to save money for your retirement. You want your retirement payments to be $

$100$

$,$

$000$

$$annually$,$ starting when you are

$66$

$$years old

$($

time

$=$

$41)$

$.$

$$You expect to live

$25$

$$years after you retire, so you must receive

$25$

$$payments$.$ You have $

$5$

$,$

$000$

$$already saved. Return on your savings of

$7$

$\%$

$$per year. Your savings amount will be constant during your savings years. You don't save during retirement.