1) Suppose someone earns $70,000 per year for their entire career (no inflation, no raises). They intend to work from age 22 to age 66. Upon retirement, they would like their annual income to be 70% of their old salary. They expect to live until age 86. They estimate they will earn an annual rate of return of 7% on investments. If they start saving at age 22, how much do they need to save per year while they are working to accomplish their goal? What percent of their annual salary does this annual saving represent?

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Answer to Q1 First question in the list First Present Value at the age of 66 shall be calculated of ... View the full answer