6. Bowie, age 52, has come to you for help in planning his retirement. He works for a bank, where he earns $60,000. Bowie would like to retire at age 62. He has consistently earned 8% on his investments and inflation has averaged 3%. Assuming he is expected to live until age 95 and he has a wage replacement ratio of 80%, how much will Bowie need to have accumulated as of the day he retires to adequately provide for his retirement lifestyle? a. $726,217.09 b. $784,314.45 c. $1,050,813.28 d. $1,101,823.40

7. Assuming the same facts as Question 6, approximately how much must Bowie save at the end of each year, from now until retirement, to provide him with the necessary capital balance assuming he has a zero balance today? a. $67,163.98 b. $70,424.36 c. $72,537.10 d. $76,058.31

Need Help for #7.