3.Today is your aunt's 40^th birthday. She expects to retire at age 65 and actuarial tables that your aunt will live to be 100. She wants to move to Hawaii when she retires (at age 65) and estimates that the move will cost her $200,000. She also estimates that her annual living expenses in Hawaii will be $25,000 a year.She expects her savings will continue to earn an average rate of return of 7 percent.

a.How much will she need to have saved by her retirement date?

b.She already has $50,000 in savings. How much would she need to save at the end of each of the next twenty years to be able to afford this retirement plan?

c.If she did not have any current savings and did not expect to be able to start saving money for the next five years (that is, her first savings will be made on her 45^th birthday), how much would she have to set aside each year after that to be able to afford this retirement plan?