GradyZebrowski, age25, just graduated fromcollege, accepted his first job with a $47,000 salary, and is already looking forward to retirement in 40 years. He assumes a 3.2 percent inflation rate and plans to live in retirement for 20 years. He does not want to plan on any Social Security benefits. Assume Grady can earn a 6 percent rate of return on his investments prior to retirement and a 5 percent rate of return on his investmentspost-retirement

questions

• If he needs this amount for 20 years, how much does he need in total forretirement?(Hint: Use theinflation-adjusted rate ofreturn.)
• How much does Grady need to save per month to reach his retirement goal assuming he does not receive any employer match on his retirementsavings?