With hopes to retire at a decent age and move to Hawaii, an engineer plans to turn her investment account over to a professional management firm that promises to make a real return of 10% per year when the inflation rate is 4% per year. The account currently is valued at $422,000 and she wants to retire in 15 years.

(a) How much in future-dollar terms will have to be in the account to realize the promised 10% per year return?

(b) Is this an example of case 1 or case 2 as described in the text?