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Alain is 30 years of age today and his salary next year will be $40,000. Alain forecasts that his salary will increase at a steady

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Alain is 30 years of age today and his salary next year will be $40,000. Alain forecasts that his salary will increase at a steady rate of 5% per annum until his retirement at age 60. (a) If the discount rate is 8%, what is the present value of these future salary payments? (b) If Alain saves 5% of his salary each year and invests these savings at an interest rate of 8%, how much will he have saved by age 60? (c) If Alain plans to spend these savings in even amounts over the subsequent 20 years, how much can he spend each year? (SHOW YOUR WORKS AND CALCULATION IN EXCEL)

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