a) You plan on retiring in 35 years and want to accumulate enough by then to spend $50,000 per year for 20 years. If the interest rate is 6%, how much must you accumulate by the time you retire?

b) How much must you save each year until retirement in order to finance your retirement consumption?

c) Calculate the required preretirement real annual savings necessary to meet your consumption goals. Compare your answer to (b). Why is there a difference? What is the nominal value of the amount you need to save in the first year? In the 35th year?