1. Bilbo plans to retire in 25 years (t=25) from today and to save $4,000 per month until his retirement with the first saving starting from today (t=0). He expects to have $2,000 monthly expense starting from the first month after year 25 (t=25) through year 50 (t=50). He also wants to leave an amount of inheritance to his son Frodo at year 50 (t=50). The discount rate for Bilbo's entire life is 6% (APR).

Suppose Bilbo strictly follows his financial plan,a)how much savings would Bilbo have in year 25 (t=25)?

how much at most would Bilbo's inheritance be in year 50