Determine how much money Terry needs to save per year for retirement. Terry is currently $35$ years old, plans to retire at $70$ and expects to live until $85.$ He would like to have $$85,000$ a year in retirement income. He assumes an annual return of $7\%$ which includes the effects of inflation. He plans on annual deposits and withdrawals at the end of the year.

$$ Part A$.$ What is the total amount that he needs to have in savings when he retires?

o Hint: Look at how many years he expects to be retired and how much income he wants per year.

o Ask yourself how often are the payments being made and when will he have the total amount?

o This will help you determine if this is a lumpsum or annuity problem and if it is a present value or future value problem.

$$ Part B$.$ Once you have the amount that he needs at age $70,$ determine how much does he need to save per year until he retires?