1. **State the problem:** You want to retire in 16 years with a future value equivalent to 15,000,000 in today's money, considering 3% inflation. 2. **Adjust the target amount for inflation:** The future value needed is calculated by adjusting for inflation using the formula: $$FV = PV \times (1 + i)^n$$ where $PV=15,000,000$, $i=0.03$, and $n=16$. Calculate: $$FV = 15,000,000 \times (1.03)^{16}$$ 3. **Calculate the future value:** $$FV = 15,000,000 \times 1.604706 = 24,070,590$$ 4. **Determine the annual contribution needed:** You will contribute every year for 16 years with an investment return rate of 5%. The future value of an ordinary annuity formula is: $$FV = P \times \frac{(1 + r)^n - 1}{r}$$ where $P$ is the annual contribution, $r=0.05$, and $n=16$. Rearranged to solve for $P$: $$P = \frac{FV \times r}{(1 + r)^n - 1}$$ 5. **Substitute values:** $$P = \frac{24,070,590 \times 0.05}{(1.05)^{16} - 1}$$ Calculate denominator: $$(1.05)^{16} = 2.182874$$ So: $$P = \frac{24,070,590 \times 0.05}{2.182874 - 1} = \frac{1,203,529.5}{1.182874}$$ 6. **Simplify the fraction:** $$P = \frac{\cancel{1,203,529.5}}{\cancel{1.182874}} = 1,017,600$$ 7. **Final answer:** You need to contribute approximately **1,017,600** every year for 16 years to reach your retirement goal adjusted for inflation.