You have just turned 35 and intend to start saving for retirement. Once you retire in 30 years (when you turn 65), you would like to have an income of $100,000 per year for the next 20 years. Calculate how much you would save to finance your retirement income between now and age 65. Use Goal Seek to solve the problem. Make the following assumptions: All savings draw the annual compound interest of 10%. You make the first payment today and the last on the day you turn 64 (30 payments). You make the first withdrawal when you turn 65 and the last when you turn 84 (20 payments). 1 2 Interest rate 3 Number of payments 4 Number of withdrawals 5 Size of annual withdrawal 6 7 8 Present value at age 65 of withdrawals 9 Future value at age 65 of payments 10 11 12 Size of payment 13 14 Size of payment 15 16 17 18 19 20 21 22 23 24 25 26 A 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 B 10% 30 20 100,000 C D Year 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 E Age 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 F G 0.00 Total, Payment at Withdrawal at beginning of beginning beginning year of year of year 10,000.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 H 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 I Total, end of year J K