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Hello, I've got some troubles in dealing with these 2 questions. I am a bit confused about the timeline so I have no clue on

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Hello, I've got some troubles in dealing with these 2 questions. I am a bit confused about the timeline so I have no clue on how to solve them. Could anyone please explain a bit? Thank you so much!

image text in transcribed
Question 1: Mr Craig Allen has just turned 35 and he is in the process of joining a pension plan. He is planning to retire at 65 (i.e., in 30 years' time). At the moment, the rate of return on retirement savings is 7% per year and it is expected to remain constant over time. The discounting rate is also 7% per year and it is expected to remain constant over time. This pension plan does not allow any withdrawals until retirement. After that point, Mr Allen can make withdrawals as he sees t. After researching information on average life expectancy for males of his background, his plan assumes that he will live until age 90 (i.e., 25 years after his retirement). The plan also estimates that, given his current living standards, Mr Allen will need $100,000 per year to live comfortably during his retirement until his 90":l birthday. a. Assuming that Mr Allen withdraws $100,000 at the end of each year after he retires until his 90th birthday, what is the value of this stream of 25 future cash inows at the time when he retires? What are these cash inows worth today? b. Assuming that Mr Allen withdraws $100,000 at the end of each year after he retires until his 90th birthday, how much does he need to start paying at the end of each year until his retirement to achieve his goal

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