Harold wants to have the equivalent of $100,000 per year (in today's dollars) for living expenses during his retirement and is not counting on receiving any social security. Assume savings is made at the end of the period and withdrawals are made at the beginning of periods. Here is additional information:

• He plans on retiring at the end of 28 years
• He wants to plan on being in retirement for 38 years
• The annual average inflation rate for the entire period is 3%.
• His retirement account will earn an average annual rate of return of 8% before he retires, and an average of 6% after he retires.

Show your work for partial credit (i.e. inputs N=, I/Y=, PV=, PMT=, FV=, BGN/END mode) under each of the problems. (Note: Make sure you write down inputs.)

1. Use the future value to inflate today's annual dollar needs to the annual amount needed beginning at the retirement date. (3 points)
2. Calculate the capital needed at retirement on day 1 assuming that the principal will be liquidated. (3 points)
3. Calculate the required annual savings amount from now until retirement. (3 points)