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Assume that your friend is now age 5 3 and plans an early retirement at age 6 0 . He will be able to save

Assume that your friend is now age 53 and plans an early retirement at age 60. He will be able to save $36,000 per year for the next three years and $120,000 per year for the following four years. In addition, he has $900,000 currently invested in undeveloped real estate.
(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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