You plan to retire in 20 years. You would like to maintain your current level of consumption which is $38,489 per year. You will need to have 20 years of consumption during your retirement. You can earn 5.3% per year (nominal terms) on your investments. In addition, you expect inflation to be 3.9% inflation per year, from now and through your retirement.

How much do you have to invest each year, starting next year, for 8 years, in real terms to just cover your retirement needs?