Target replacement rate of pre-retirement income (Cont. Next compute the retirement income Next compute how much you need to save each year n=30,i=3,PV=0,FV=-268,604-> PMT=5,646 To obtain a real $22,500 you need to save $5,646 per year! .THE COURSE OF FINANCE 2017 SPRING SJTUTarget replacement rate of pre-retirement income (Cont.)  Next compute the retirement income  Next compute how much you need to save each year n=30, i = 3, PV=0, FV= -268,604 -> PMT=5,646  To obtain a real $22,500 you need to save $5,646 per year! •THE COURSE OF FINANCE 2017 SPRING SJTU •7