2. A new employee aged 20 joins a DC pension plan. Their salary is $35,000 per year. - Salary is expected to increase by 5% per year. - The normal form of the pension is a whole life annuity guaranteed for 20 years payable at the start of each year. - Mortality after retirement follows the standard ultimate life table. - i=5% after retirement. - i=7.5% before retirement. - The employee plans to retire at age 55 . - There are no other sources of retirement income. a) Calculate the annual accumulation rate to achieve a replacement ratio of 60% at retirement. b) Assume the interest rate before retirement is only 6%. To what age must the employee work to achieve a replacement ratio of 60%