How much total money will save from paycheck

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Assume you are 20 years old now. You expect to retire when you are 50 years old. Your annual projections are as follows:

Age                                   Salary                   Savings rate                        Rate

20-22 years old            $5,000                       %0                           %20

23-25 years old          $55,000                        %5                          %15

36-45 years old           $150,000                       %10                       %20

46-50 years old           $500,000                       %25                       %5

Problem 1: When you retire you will buy an annuity that makes annual payments. You expect the rate of return to be 5% annually for the 20 years until you die.

Problem 2: How much total money will you save from your paycheck NOT including interest from investing?

Reference no: EM132949152

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