Your father, age 50, has saved $120,000 on his Roth IRA account for his retirement income. He plans to deposit $6,000 at the beginning of each year for the next 16 years (total of 17 deposits & the last deposit will be at his 66^thbirthday) into an account that would yield 8% return a year. Upon retirement at his 67^th birthday, he plans to purchase a 25-year (immediate) annuity at 6% APR that will pay the same amount at the beginning of each year (i.e., the first payment will be at his 67^th birthday).

a). How much would he have at age 67?

b). How much would he receive every year from the (25-year) annuity?

c).  If inflation rates are expected to be 3% a year, how much is worth today of the first payment from the annuity?