Even though it is too early to think about retirement, you have already

decided that you want to accumulate enough by then to provide yourself

with $30,000$ a year for $15$ years after you retire. If the interest rate is $10\%$ how

much must you accumulate? $($You are asked to calculate the present value

of $30000$ for $15$ years$)$

b$)$ How much must you save each year until retirement in order to finance your

retirement consumption? Important: your retirement is in $30$ years, not $15.$

c$)$ Now you remember that the annual inflation rate is $4\%.$ You really want to

consume $$30,000$ a year in REAL dollars during retirement and wish to save

an equal REAL amount each year until then. In addition, interest rate is now

compounded DAILY, not yearly. What is the real amount of savings that you

need to accumulate by the time you retire? $[$Hint: calculate the real interest

rate first and then compound daily