Bill has come to you to help him plan his retirement needs. He currently makes 200,000 per year and would like to retire in 25 years with 85% wage replacement ratio. he also would like to buy a $500,000 dollar cabin(in today's dollars) at the end of his 5th year of retirement. Assume that the average inflation rate will be 4% per year from now until retirement, the average inflation rate will be 3% per year in retirement,the average return on his investments will be 8% before retirement, and the average return on his investments will be 5% during retirement.

1. how much will he need by his retirement date to satisfy his goals(assuming he starts withdrawing his retirement income need at the very beginning of reitrement and will do so annually?

2. how much would he have to save at the end of each month starting today in order to reach his goal?

3. How would #2 change if he also wants to leave a nest egg at death equivalent to what he started with at retirement?

4. How would #2 change if he also wants to leave a nest egg at death equivalent in purchasing power to what he started with at retirement?