Demonstrate how close Mr T will come to his goal of a capital sum of $2,354,000.

Mr T wants to retire in 15 years at age 65. He has determined that he will need a capital sum of $2,354,000 at that time to provide his retirement income. He presently has a retirement plan with a current amount of $350,000 to which he will add $26,000 per year. Mr T assumes that his preretirement and post-retirement rates of return will be 8%, and that inflation will average 3%. He expects to live to at least age 80 but wants to use age 95 for all calculations.