1. A 25-year-old wants to establish an annuity for retirement purposes. He wants to make monthly deposits for 40 years so that he can then make monthly withdrawals of $3,000 for 20 years. The annuity earns 6.3% interest compounded monthly. a. How much will have to be in the account at the time he retires? Find PV of annuity (loans): PV = PMT (1-(1+ A b. How much should be deposited each month for 40 years in order to accumulate the required amount? NOTE: PV from part a = A in part b. Savings plan payment required to attain PV in part a: PMT= ((1+1) c. What is the total amount of interest earned during the 60-year period? Total value of payments received - Total value of payments deposited.