Question: You plan on saving $ 1 5 , 0 0 0 a year for retirement and expect to retire in 3 5 years. You also

You plan on saving $

15, 000

a year for retirement and expect to retire in

35

years. You also expect annual tuition of $

40, 000

for your son starting from

13

years from now for

4

years. The tuition payment is made at the beginning of each year your son is in college. How much will you be able to spend annually from your retirement savings, if you expect to live for

35

years after you retire? Assume no taxes and an interest rate of

5 % .

Assume all numbers are real, so you do not need adjust for inflation.

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