(A) Your cousin recently turned 25 years old, has just received her MSc from NYU, and accepted her first job. Now she must decide how much money to put into her retirement plan. The plan works as follows: Every dollar in the plan earns 7% per year. She cannot make withdrawals until she retires on her 65th birthday. After that point, she can make withdrawals as she sees fit. She decides that she will plan to live to 90 and work until she turns 65. She estimates that to live comfortably in her retirement, she will need 100,000 per year starting at the end of the first year of retirement and ending on her 90th birthday. She will contribute the same amount to the plan at the end of every year that she works. How much does she need to contribute each year to fund her retirement?

(B) Part (A) is not very realistic because most retirement plans do not allow your cousin to specify a fixed amount to contribute every year. Instead, she is required to specify a fixed percentage of her salary that she want to contribute. Assume that your cousins starting salary is 75,000 per year and it will grow 2% per year until she retires. Assuming everything else stays the same as in Question 4, what percentage of her income does your cousin need to contribute to the plan every year to fund the same retirement income?