Reference no: EM133264728

Question: Andrew reeson aged 22, is about to begin his carrier as an economist for the treasury. being an economist, Andres knows he should begin saving for retirement immediately . part of his inspiration came from reading an article on retirement funding in the Australian financial Rivew. the article indicated that the ratio of workers paying tax to retirees collecting pension will drop dramatically in the future. in fact the number will drop to two workers for very retiree by 2040. Andrew's retirement plan allows him to make yearly contributions and it pays 9% interest annually. upon his retirement at age 65( in 43 years), Andrew plans to buy a new boat, which he estimates will cost him $300000. he also estimate in oder to live comfortably he will require a yearly income of $80000 for each year after he retries. based on his family history, Andrew expects to live until age 80(that is he would like to receive 15 payment of $80000 at the end of each year). when he retries, Andrew will purchase his boat in one limo sum and place the remaining balance into an account that pay 6% annual interest, from which he will withdraw $8000 per year. if Andrew's first contributions is made one year from today and his last is made the day he retries, how much money must he contribute each year to his retirement fund?