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We want to retire in 30 years, and we shall need $50,000 income per annum during our retirement which wills last 20 years. We can save $10,000 annually during the first 10 years. We estimate that from year 16 till 20 we shall return to school for a graduate degree, which will cost $40,000 yearly in actual cash flow and opportunity cost expenses. Additionally, we’ll send our niece to college for 4 years starting in year 26 from now. Her tuition will rise by 4% annually, but it will be the same every year after year 26. We would like to know what the pension fund should be to finance our retirement. Second, what annual savings should we accumulate from years 30 to 40 to be able to fund all the aforementioned expenses and our retirement? We have a discount rate of 6%. Show work and formulas

Financial Management, Finance

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