Question: Gary Williams will turn 25 years old tomorrow. He comes up with a plan to save for his retirement at 65 years of age. He

Gary Williams will turn 25 years old tomorrow. He comes up with a plan to save for his retirement at 65 years of age. He has set himself a retirement target of $1,000,000. He currently has an inheritance of $5,000 invested in a money market account earning 5.25 percent. He plans to leave the money market account as part of his retirement savings portfolio. To achieve his retirement goal, he plans to put aside an extra savings every year, starting next year (at his 26th birthday) through his last contribution at age 65, in a mutual fund that will earn 9 percent annually. How much will Gary have to save every year?

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