Answer:
Find attached
Explanation:
The present value of $97,000 per year after retirement for 35 years is computed thus:
=-pv(rate,nper,pmt,fv)
rate is the plan rate of return of 6.5%
nper is 35 years(years after retirement)
pmt is the amount required per year
fv is not applicable is taken as zero
=-pv(6.5%,35,97000,0)=$1,327,634.80
The amount needed in the account at retirement is the future value of the plan.
Regular yearly payment into the plan is =pmt
=pmt(rate,nper,-pv,fv)
=-pmt(6.5%,35,0,1327634.80)=$ 10,703.74
The percentage of income that must be contributed is found in the attached
