3. Jorge plans to retire at the age of 65 and believes he will live to be 85. He wants to receive an annual retirement payment of $50,000 at the end of each year. He sets up a retirement account that is estimated to earn 8 percent annually.
   1. How much money must Jorge have in the account when he reaches reach 65 years old?

2. Jorge is currently 30 years of age. How much must he invest in this account at the beginning of each year for the next 35 years to have the amount you just calculated (in 4.a) in his account at age 65?

Hint - This is then a future value of an ordinary annuity and you are solving for A.

4. XTRA CREDIT PROBLEM: Calculate the monthly mortgage payment made on a $120,000 mortgage. The mortgage is for fifteen years and the interest rate is 4 percent