You want to retire in 40 years. After retirement, you want $140,000 per year for 25 years, and you expect to earn 4% annually on your savings during retirement. How much do you need to save each year for the next 40 years, assuming youll earn 6% on your savings, and assuming you increase your savings amount by 5% each year while working? Assume your retirement account will end with $100,000 after the 65 years has passed. And assume you begin with $0 in the retirement account. The cash flows occur at the end of each year. Assume your $140,000 needs to grow by 2% a year to offset inflation. How much is your savings amount (cash flow) in year 1?

	Number of working years	40
	Number of retirement years	25
	Return during working years	6%
	Return during retirement	4.00%
	Savings growth rate	5.00%
	Retirement spending growth rate	2.00%
	Spending in first year of retirement	$ 140,000
	Savings Amount in year 1		(solver or goal seek)
Year	Beginning Balance	Cash flow	Ending Balance