You have recently been hired as a consultant for a personal financial planning firm. One of your first projects is creating a retirement plan for a young couple, Cameron and Gabriella Travis. They have just celebrated their 35th birthdays and have decided to get serious about saving for retirement.
Cameron and Gabriella hope to retire 30 years from now (on their 65th birthdays), and they expect to live until age 90. Their hope is to be able to withdraw $125,000 a year from their retirement account – the first withdrawal will occur on their 65th birthdays, and the 25th and final withdrawal will occur on their 89th birthdays. They expect to leave their children a total inheritance of $1.5 million to split amongst themselves. So, on their 90th birthdays, the account is expected to have a $1.5 million value (i.e., they expect to leave their children a total inheritance of $1.5 million).

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