1)You are celebrating your 35^th birthday today and want to start saving for your retirement at age 65.You want to be able to withdraw $15,000 per year on each birthday for 12 years following your retirement; the first withdrawal will be on your 66^th birthday.You intend to invest your money in an account that pays 9% per year.You want to make equal, annual payments on each birthday into this account.

a.If you start making these deposits on your 36^th birthday and continue until you are 65, what amount must be deposited annually to reach your goal?

b.Suppose you just inherited a large sum of money.Rather than making equal annual payments, you decide to make one lump-sum payment on your 36^th birthday to cover your retirement needs.What amount do you need to deposit?

c.Suppose your employer will contribute $250 into the account every year.In addition, you expect a $10,000 distribution from a family trust fund on your 55^th birthday, which you will also put into the retirement account.What amount do you need to deposit annually now to meet your retirement goal?