You are currently 35 years old and plan to retire at 65. You will need 25 yearly payments of $150,000

Fair interest rate is 7% annually

Inflation is 3% per year (the real rate is 3.89%)

N=30

FV=$2,370,796.47

PV=0

Rate= 3.89%

PMT= $43,054.18

1) The annual payments you calculated above are in real dollars. Since your first annual investment will be made next year, what is the nominal (actual) amount you need to invest next year to account for inflation?

2) Based on the assumptions in the problems above, how much will you need in your retirement account in nominal dollars when you retire at age 65?

3) Based on the assumptions in the problems above, what amount will you withdraw from your retirement account on your 66th birthday, the first year of retirement, in nominal dollars? On your 85th birthday?

66^th Birthday - $

85^th Birthday - $