Suppose you have decided to set up a personal pension fund for your retirement. You just turned twenty-five. You expect to retire at age sixty-five and believe it is reasonable to count on living at least twenty years after retirement. Furthermore, you wish to have an annual income of $90,000 during your retirement starting when you turn sixty-five, and that upon receipt of the twentieth payment, the entire capital sum would have been distributed. You have been offered two investment plans by your financial adviser: (1) an “aggressive” portfolio of well-diversified equities that promise to yield on average a 11 percent rate and (2) a “conservative” portfolio of government bonds that promise to yield on average a 5 percent rate. How much must you invest in each of the two savings schemes each year, starting now until you retire, to ensure that you receive the $90,000 per year retirement income?