Bill Jones is 37 years old, and has $150,000 already set aside in his retirement account and is planning to add an equal amount in real terms at the end of each of the next 30 years so that he can retire at the age of 67. His goal is to build a retirement account that will enable him to make 24 annual withdraws with a purchasing power of $100,000 (at todays prices) on his 68th through 82nd birthdays. His retirement account is expected to earn 7.00% per year and the expected inflation rate is 2.00% per year.

A.) How much does he need to set aside in real terms at the end of each of the next 30 years to meet his retirement goal?

B.) Compute the year 1, 2, and 3 payments in nominal terms

C.) Compute the year 30 and 45 withdrawal amounts in nominal terms