a) You are 50. You plan to take early retirement from your company in 8 years. You can save $6,000 per year at the end of each of the next four years and earn 6% compounded annually, and $20,000 at the end of each of the following four years and also earn 6%. You currently own $300,000 in land, which you expect to appreciate at 5% per year. Upon retirement, what will your net worth be (assuming you owe nothing)?

b) Given the results of the previous problem, you expect to live 30 years past retirement. Your plan is to liquidate all of your holdings in the previous problem. You project interest rates to be 7% compounded annually. How much can you withdraw at the end of each year and still leave your (wonderful) children an estate of $150,000 for them to fight over?