2. Retirement Planning At the age of 30, you decide to start saving for your retirement at the age of 65. You expect that inflation will be 1.5% per year, and the nominal interest rate is 4%. (Annual for both of these) (a) Suppose you wish to make sure you have enough in your retirment account at 65 that has the same purchasing power today as $1,000,000 today. How much money will this be (Note this is an inflation question) (b) Assume that you save for retirement by investing the same nominal amount every year at the nominal interest rate. To reach the above amount (FV) how large must your annual contribution be? (c) What is the exact value of the real interest rate in this problem (Do not use a Fisher Approximation, you should be able to calculate this explicitly)