Plan for retirement-saves every year with rate of inflation

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Anna wants to plan for retirement. She stimates that she would need $24,000 when she retires at age 67 to live the first year after retirement (year 68). She estimates that the amount that she will need for living will have to grow by 3.5% every year to keep up with inflation. Her retirement account earns 4.5% every year. How much should she start saving on her 36th birthday to comfortably live till she is 85 years old, if she is ready to increase the amount that she saves every year with the rate of inflation?

Please show work and explain how and which Excel functions were used

Reference no: EM131968548

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