The company you work for will deposit $150 at the end of each month into your retirement fund....

The problem requires the use of both the present value and future value concepts in finance. Also, since the equal payments are made over equal intervals, we have to use the annuity formula:

PV of annuity = P x (1 - (1 + i)^-n) / i

FV of annuity = P x (1 + i)^n - 1) / i

where:

P = Periodic payment

i = interest rate

n = number of periods

According to the problem statement, you want to withdraw $2000 per month during retirement, which will last 30 years. In order for you to withdraw $2000 per month for 30 years, you need to compute how much money you should have in your retirement fund at the start of your retirement (25 years from now). This requires you to compute the present value of $2000 per month for 30 years. Using the formula for the PV of the annuity:

P = $2000 per month

i = 12% / 12 months = 1% per month

n = 30 years x 12 months per year = 360 months

PV of annuity = $2000 x (1 - (1 + 1%)^-360) / 1%

PV of annuity = $194,936.66 --> This is the amount that you need to have in your retirement fund when you reach your retirement age.

Remember, you will retire 25 years from now. This means that, in today's perspective, $194,936.66 is the future amount (that is, 25 years from now).

Now, use the FV of annuity formula to compute for the periodic payments needed in order to raise the amount of $194,936.66 after 25 years. Thus:

FV of annuity = $194,936.66

P = ?

i = 12% / 12 months = 1% per month

n = 25 years x 12 months per year = 300 months

FV of annuity = P x ((1 + i)^n) - 1)) / i

$194,936.66 = P x ((1 + 1%)^300)) - 1) / 1%

P = $103.75

Thus, $103.75 is the amount needed to be deposited in the retirement fund every month. However, since your employer will deposit $150, you don't need to add another deposit in order to meet your retirement needs.