You have just turned 35, and you intend to start saving for your 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 have to save between now and age 65 in order to finance your retirement income.
Make the following assumptions:
• All savings receive compound interest of 10% per year.
• You make the first payment today and the last payment on the day you turn 64 (30 payments).
• You make the first withdrawal when you turn 65 and the last withdrawal when you turn 84 (20 payments).