Free Response: Write your answers legibly and in an organized fashion in the space provided. PLEASE underline or circle your final answers and clearly label the work for each part of the question. 17 points each. You have just graduated from college (Congratulations!). Assume you are 22 right now (happy birthday!) and plan to retire when you turn 65. Your salary is $70,000 (paid at the end of the year) and you expect it to remain constant until you retire. Your retirement savings will earn a return of 7% per year with annual compounding (ie the interest rate is 7% per year with annual compounding). (HINT: COUNT out the years for each part of the problem using your fingers if necessary, the timing is important!) a. If you save 30% of your salary for the next 13 years (last savings deposit on your 35th birthday), and then don't save any more or withdraw any money, how much money will you have in your savings account when you turn 65 (on your birthday)? b. If you don't save anything for the next 13 years, and start saving a part of your salary in 14 years (on your 36th birthday) and continue saving until you retire (make your last savings payment on your 65th birthday). What percentage of your salary will you have to save every year to have the same amount of money as from part a)? C. How much money can you spend every year (assuming you only spend money on your birthday, starting with your 66th in retirement if you think you will live to be 90 and plan to run out of money on your 90th birthday. Assume you keep earning 7% on your savings. d. What will the balance in your bank account be on your 75th birthday (after you've made your withdrawal for the year)