Question: I am planning on investing for retirement. I estimate that I will need $100,000 per year for twenty years. I expect to earn 6%while accumulating and 4% in retirement. . I am now 25 expecting to retire at 67 and have nothing in the plan yet, and from this year I will be contributing equal annual amount.
Note: I already know the answers, but I am having trouble figuring out how to get it. I would appreciate it if someone could show how this answer was found using TI-84 TVM solver. Thank you
(a) How big must those contributions be?
(b) I started on that plan ten years ago and am now 35 and have $80,000 in the plan. If I continue to make the contributions from part (a), what retirement income can I expect?