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You are 45 years old and plan to retire in 15 years. After you retire you expect to live for 25 years. You want a
You are 45 years old and plan to retire in 15 years. After you retire you expect to live for 25 years. You want a fixed retirement income that has the same purchasing power at the time you retire as \( \$ 120,000 \) has today (you realize that the real value of your retirement income will decline year by year after you retire). Your retirement income will begin the day you retire, 15 years from today. Inflation is expected to be 2 percent per year from today forward, you currently have \( \$ 125,000 \) saved up, and you expect to earn a nominal annual return on your savings of 8 percent per year. To the nearest dollar, how much must you save during each of the next 15 years (with - deposits being made at the end of each year) to meet your retirement goal?
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