1.Suppose you are 35 years old and plan to retire in 30 years at age 65, after which you plan to live for another 15 years after retirement.Assuming that the interest rate from now until the end of retirement will average about 6% and that your income before retirement will be about $80,000 per year, how much should you save annually between now and retirement:

a.If you want to replace about 75% of your income after retirement?

b.If you want to spend the same amount of money after retirement as you did before retirement?

(Hint:All of your income before retirement that you don't save you will spend, and the amount you save up to retirement should leave you with enough money accumulated by retirement to spend the same amount of money annually throughout your period of retirement as you spent before retirement.)