Shelli graduates from the University of South next month on her 25 ^th birthday, and she is excited to begin her new career. Because she wants to have a comfortable living when she retires, Shelli has decided to begin planning for her retirement now. As a result, she is currently evaluating the amount she needs to contribute to a retirement fund satisfy her financial requirements at retirement. After speaking to retired friends and relatives, Shelli estimates she will need $60,000 each year to be able to live comfortably and enjoy her “twilight years.” In addition, Shelli expects that she can invest in a retirement fund that will yield 8 percent interest compounded annually for a long as she contributes to the fund. As soon as she retires, Shelli will have to move her retirement “nest egg” to another investment so she can withdraw money when she needs it. Her plans are to move the money to a fund that allows withdrawals at the beginning of each year and pays 5 percent interest compounded annually. Shelli expects to retire in 40 years, and, after taking an online “life expectancy” quiz, she has concluded that she will live another 25 years after she retires. If Shelli’s expectations are correct, how much must she contribute to the retirement fund to satisfy her retirement plans if she intends to make her first contribution to the fund one year from today and the last contribution on the day she retires?

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