John, age 36, currently makes $90,000. His wage replacement ratio is determined to be 80 percent. He expects inflation will average 2 percent for his entire life expectancy. He expects to earn 7 percent on his investments and retire at age 70. Based on family history, he expects to live to age 95. He has received his Social Security benefit statement, which indicated that his Social Security retirement benefit in todays dollars is $14,000 per year.

A. Calculate Johns capital needed at retirement at age 70

B. Calculate the amount John must save at the end of each month, assuming that he has current retirement savings of $30,000, to accumulate the capital needed for retirement at age 70

C. John comes back to you and states that he would like to be able to leave his children and grandchildren with something upon his death. How much would John need to save to be able to leave his beginning account balance intact upon his death? How much more would he need to save at the end of each month to achieve this goal?