Problem: Ted Gardiner has just turned 30 years old. He has currently accumulated $35,000 toward his planned retirement at age 60. He wants to accumulate enough money over the next 30 years to provide for a 20-year retirement annuity of $100,000 at the beginning of each year, starting with his 60th birthday. He plans to save $5,000 at the end of each of the next 10 years. What equal amount must he save at the end of years 11 through 30 to meet this objective? The interest rate for the first 10 years will be 5 percent. After that time, the interest rate is expected to be 7 percent.