It is your 25th birthday [end of 25 years] and you decide that you want to retire on your .65\"! birthday {end of 65 years - 40 years later}. You salary is 555,000 per year and you expect your salary to increase by 3% each year for the next 40 years. When you retire, you want your retirement fund to providean annual payment equal tol'it of your salary at age 65 and to increase by 2% a year {to cover ination} through the end of your retirement. You estimate your retirement will last 25 years {Age 65-89 - 25 payments}. You want to leave your children the sum of $750,000 when you die on your 9053 birthday [a nice present to your children]. You do not want to work during your retirement and you are not counting on Social Security to proylde anything during your retirement. You need to have all your money in the retirement fund on the day you retire [55 years old} and you aloe make the first retirement payment to yourself on your 65W birthday. 'Alt calculations take piece at the end of each year therefore you can use the rate tables. You EM need to refer to rate tables in the book. Your expected rate of return {investment rate} for the entire period of time (55 years} is 5%. You are determined to save $15,000 a year for the first 20 years and $25,000 a year for the remaining 20 years until you retire. ' 1} What wi your salary he at age 05 {40 yearn from today]? How much is 30% of that eatery [retirement goal} and how much' Income per year doe-5 your retlrement fund need to provide if your needs Increase by 2% a year? 2} _ How much wiii do you need In your retirement fund on the day you retire in order to receive the amounts' In question #1 and leave the inheritance to your children? Show proof for the 26 payments {including inheritance} that you have enough' In the fund? '