Draw the time line for this problem. Write out the formulation for each part:

Even though you have not been very proactive about your financial future up to this point, your mom has been nagging you to consider your retirement after you move out of her house. She has recommended that you plan to retire at 65 (40 years from now) and that you should have enough saved to draw $28,000 per year after that for another 25 years.

a. How much will you need to have in an account in 40 years to draw that annual amount if you have an account that earns 5.5% per year?

b. How much will you need to save monthly in that 5.5% account starting now to get there?