Question: Assume that you are 30 years old and wish to retire at age 65. When you retire, you want to be able to draw $75,000 per year from you retirement account until you reach the age of 90. If you start at the end of this year, and receive a 9% annual return on your investment, how much money will you need to deposit into your retirement account every year to be able to draw your $75,000 per year?

To solve this problem, can you first find the present value of the $75,000 annuity that you will receive during retirement. Next can you find the amount of the annuity necessary to build up to that present value.