Problem:
You have 37 years left until retirement and want to retire with $3.4 million. Your salary is paid annually, and you will receive $48,000 at the end of the current year. Your salary will increase at 4.1 percent per year, and you can earn a 12.1 percent return on the money you invest.
Required:
Question 1: If you save a constant percentage of your salary, what percentage of your salary must you save each year?
Note: Please show how you came up with the solution.