Determining the current interest rate
An individual, who is currently 30 years old, wants to work until he is 65 and plans on dying at the age of 85. Assuming that the current interest rate is 5% (and the rate is going to hold for the life of the individual), answer the following questions:
1) How much will the individual have to amass by the time he is 65 if he plans on spending $40,000 per year while retired and until he dies?
2) How much will the individual have to set aside each year while working before he hits the retirement age?
