Jennifer decides today, on her 23rd birthday to start saving towards her retirement so that she would receive on her 63rd birthday a lump sum of $600,000 using todays dollars.

1. a- If she intends to make 160 equal quarterly, end-of-period deposits, what would be the amount of her quarterly deposits, in real dollars using todays dollars? Assume a market interest rate of 2% per quarter and an inflation rate of 1.5% per quarter.

2. b- If she intends to make 40 annual, end-of-year deposits that increase by $1,000 starting at the end of year 2, how much would her first deposit (i.e., at the end of year 1) be, in actual dollars? Assume a market interest rate of 10% per year and an inflation rate of 2% per year.