6. Joseph Schlitz has accepted a job offer from a brewing company in Milwaukee to work as a financial analyst. He has just tumed 25 today and he plans to retire at the age 65. Joe's current annual salary is $80,000. Joe predicts that his salary will increase at a steady rate of 4% per year until retirement. Joe will contribute 10% of his pre- tax salary each year toward his 401(k) plan, with the company matching first 5% of Joe's pre-tax salary dollar-for- dollar. Joe expects to invest these savings in a diversified array of mutual funds with expected annual return of 8% compounded annually. Assume he starts investing from today and his last savings will occur at the age of 65 (a). If Joe plans to withdraw these retirement savings in equal amounts over the subsequent 20 years, how much can he withdraw each year? His first withdrawal will be on his 66h birthday and his last withdrawal will be on his 85h birthday. How much can Joe withdraw each year if he plans to leave $ 8 million to the Schlitz Foundation at the age of 85? (b) Joe now wants to protect the value of his retirement income against inflation. If he wants his retirement income to rise by 3 % per year, how much can he withdraw first year, i.e., on his 66th birthday? How much can he withdraw on his 75th birthday