Hank is 25 and has just begun his first real “big people” job. He is beginning to plan for his retirement because, “If you fail to plan, you plan to fail.” He considers that he will retire at age 65. (Note: How many years is Hank planning to work?) In retirement, he expects to need $2000/month to cover his expenses. Due to genetics and the overall health of his parents and grandparents, Hank figures his life expectancy to be 85. (Note: How long does Hank expect to live after he retires?) Hank figures (conservatively) that any investments he makes will return 7.2% compounded monthly.

1. Use the Amortization Formula with ????????????= Hank’s monthly expenditures after retirement to find exactly how much he needs to have saved while he is working.

2. Use the FVOA Formula to find out how much Hank needs to set aside each month to achieve his goal.