You plan to retire 20 years from now and start withdrawing $140,000 per year at the end of each year for the next 30 years. You expect to inherit $115,000 from your aunt in 10 years which you will add to your retirement savings. You want to save a constant amount each year and need to know how much to save until retirement to achieve your retirement goal (you will make the deposits at the end of each year starting one year from now). Your savings will earn 7% and so will your retirement funds.

How much do you need to save each year to achieve your retirement goal?

Answer the following three questions. Round the first two answers to four decimals. Round the final answer to two decimals ( ie one cent).

Part A) How much money needs to be in your account 25 years from to satisfy your retirement needs?

Part B)

What is the future value of the inheritance as of the time of the retirement?

Part C) How much do you need to save each year over the next 25 years to achieve your retirement goal?