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( a ) If your friend s annual savings over the next seven years are deposited in an account that pays 6 % compounded annually

(a) If your friends annual savings over the next seven years are deposited in an account that pays 6% compounded annually and the value of his real estate appreciates at the rate of 10% per year, how much will he have upon retirement at age 60?(Disregard taxes.)(b) Your friend expects to live to be 90-- that is, he expects to live for 30 years after retirement. If at age 60 he deposits all his wealth in a saving account that pays 7% annual interest, how much should he withdraw at the end of each year to end up with a zero balance in the year of his expected death?(c) Assume all the conditions in part (b) except that your friend wants to leave an estate of $375,000 when he dies. How much can he draw out of the account each year after he reaches age 60?

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