Assume you will start working as soon as you graduate from college. You plan to start saving for your retirement on your 25th birthday and retire on your 65th birthday. After retirement, you expect to live at least until you are 85. You wish to be able to withdraw $46,731 (in todays dollars) every year from the time of your retirement until you are 85 years old (i.e., for 20 years). The average inflation rate is likely to be 5.914 percent.

A.)Calculate the lump sum you need to have accumulated at age 65 to be able to draw the desired income. Assume that the annual return on your investments is likely to be 10.998 percent. (Round answer to 2 decimal places, e.g. 15.25.)

B.)What is the dollar amount you need to invest every year, starting at age 26 and ending at age 65 (i.e., for 40 years) to reach the target lump sum at age 65? (Round factor values to 4 decimal places, e.g. 1.5212 and final answer to 2 decimal places, e.g. 15.25.)

C.) Please provide an answer for each of the blank boxes in the picture below

Now answer questions a. and b. assuming the rate of return to be 8 percent per year, then again at 15 percent per year. 8 percent 15 percent Lump sum needed at age 65 Annuity payment needed s Now assume you start investing for your retirement when you turn 30 years old and analyze the situation under rate of return assumptions of (i) 8 percent, (ii) 10 percent, and (iii) 5 percent. (iii) Lump sum needed at age 65 Annuity payment needed s Repeat the analysis by assuming that you start investing when you are 35 years old. 10 percent 15 percent 8 percent Lump sum needed at age 65 s Annuity payment needed s