Gerald Guanaco is 20 years old today and has decided to plan for his retirement. He intends making equal monthly deposits, each $300, into a bank account earning interest at the rate of 4.147% compounded once every two years. He intends the last of these deposits to occur on his 50th birthday. Thereafter, starting one month later, he will continue making monthly deposits (now $500 each) into the same account with the last $500 deposit occurring on his 65th birthday.

a. How much will Gerald have in his bank account immediately after he has made the last $500 deposit?

b. Gerald would then like to use this bank account to fund a series of equal annual withdrawals starting on his 66th birthday with the last withdrawal occurring on his 85th birthday. If interest rates are expected to remain the same, how much will he be able to withdraw annually?

c. Gerald expects that the inflation rate will be an effective 2.5% per year for the indefinite future. What will the purchasing power of his first withdrawal be in todays dollars (in todays muffins)?