Jose earns $50,000 per year in real terms. He is 35 years old and can easily continue working until age 65. He expects to live for 25 more years in retirement. He desires annual retirement income equal to 65% of preretirement income. Interest rate is 6%.

a) Determine how much Jose needs to save yearly during his working years and prepare a complete life-time plan.

b) if Jose desires to leave $20,000 for charity at the end of his life, how much should he save every year? Show complete life-time income allocation.