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1. Retirement planning (2 points) Aiming to be financially responsible, Jess, who is currently 28 years old, wants to start planning for her lifetime financial

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1. Retirement planning (2 points) Aiming to be financially responsible, Jess, who is currently 28 years old, wants to start planning for her lifetime financial wellbeing. She estimates that after she retires, she will need beginning of year withdrawals of $68,000 per year to cover living expenses for 40 years. Jess opens an investment account that promises to pay 7.75% interest compounded annually. In order to reach the amount of savings needed for her retirement in 42 years, she plans to make annual deposits of equal size into this account, with the first deposit to be made a year from now. In addition, Jess also plan to move her savings in the 7.75% account into a 4.0% safer account in 42 years when she retires. Based on the information provided above, do the following: 1) (1 point) Complete the saving phase timeline and the withdraw-phase timeline. (Instructions: Your timelines need to include all TVM-related information provided in the question but they do NOT need to include any TVM- calculation result. Use a question mark (?) to indicate any value you intend to solve for.) 2) (1 point) Find out how large each of her annual deposits has to be so that Jess can reach her retirement goal. (Instructions: If you are to use a financial calculator to get the answer, provide the financial calculator inputs and clearly indicate your final answer; if you are to use a formula, Illustrate your calculation with the formula and provide your final answer. Round all your calculation results to the nearest $1.) 0 1 2 + ..... +

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