Assume that you are 40 years old and wish to retire at age 65. You expect to be able to

average a 6% annual rate of interest on your savings over your lifetime (both prior to

retirement and after retirement). You would like to save enough money to provide

$8,000 per year beginning at age 66 in retirement income to supplement other sources

(social security, pension plans, etc.). Suppose you decide that the extra income needs to

be provided for only 15 years (up to age 80). Assume that your first contribution to the

savings plan will take place one year from now.

a. How much must you save each year between now and retirement to achieve your

goal?