21. 2.97 In planning for your retirement, you know that you won’t be able to save any money for the first 3 years after you start working, but you expect to save $5000 in year 4, $5150 in year 5, and amounts increasing by 3% each year through year 25.

(a) If your investments earn 10% per year, what amount will you have at the end of year 25?

(b) If you had the total future equivalent amount calculated above in hand today, and future inflation averaged 3% per year (the same as the percentage increase you expect to add annually to your savings), what is the remaining purchasing power 25 years in the future?