Problem:
Assume you are a 25 year old person who wants to retire at age 65. You believe you will need an income of $200,000 per year to live comfortably. Assume a discount rate of 7.5%. Also assume that you will need this income for 25 years.
Question: How much must you set aside each month to accomplish your goal? This is a two part question to get your final answer.
Please provide step by step solution of above question.