You have just inherited a large sum of money and you are trying to determine how much you should save for retirement and

[answerhappygod]

You have just inherited a large sum of money and you are trying
to determine how much you should save for retirement and how much
you can spend now. For retirement, you will deposit today (January
1, 2015) a lump sum in a bank account paying 10% compounded
annually. You don’t plan on touching this deposit until you retire
in five years (January 1, 2020), and you plan on living for 20
additional years and then drop dead on December 31, 2039. During
your retirement, you would like to receive income of $60,000 per
year to be received the first day of each year, with the first
payment on January 1, 2020, and the last payment on January 1,
2039. Complicating this objective is your desire to have one final
three-year fling, during which time you’d like to track down all
the original members of The Harry Potter Series and get their
autographs. To finance this, you want to receive $300,000 on
January 1, 2035, and nothing on January 1, 2036, and January 1,
2037, as you will be on the road. In addition, after you pass on
(January 1, 2040), you would like to have a total of $100,000 to
leave to your children.
Required:
How much must you deposit in the bank at 10% p.a. compounded
annually on January 1, 2015, in order to achieve you goal. Use a
time line in order to answer this question.