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FV and PV of an Annuity Suppose you expect to live for 20 years after retiring...

FV and PV of an Annuity

Suppose you expect to live for 20 years after retiring at age 65. You would like to save enough money to have $30,000 per year to live on during your retirement. Currently, at age 30, you would like to start saving a fixed amount each year to fund this retirement plan. How much do you need to save each year to reach your goal? (Assume all annuity payments are end-of-period, ordinary annuity payments, and use a 7% interest rate, compounded annually, in your calculations).

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