3a. Aaron would like to save for retirement. He plans to save $5,000 per year for 25 years. His annual retirement contributions will be made at the end of each year. If his retirement account can earn 6 percent annual interest, what will the account balance equal twenty-five years from today, when Aaron has made his 25^th annual retirement savings contribution?

b. Aaron purchased a medical expense insurance policy. The policy has a $3,500 deductible and an 80-20 coinsurance provision. Aaron needed a surgical procedure and he was hospitalized for three days after surgery. The total bill (surgery, hospital and other covered expenses) was $60,000. How much of this amount must Aaron pay and how much will his insurer pay? Assume all of the expenses are eligible for coverage under the medical expense policy. Clearly indicate how much each party pays. Remember to consider the deductible.