Mike Polanski is 30 years of age and his salary next year will be $40,100. Mike forecasts that his salary will increase at a steady rate of 2% per annum until his retirement at age 60.

a. If the discount rate is 8.5%, what is the PV of these future salary payments? (Do not round intermediate calculations.Round your answer to 2 decimal places.) Present value $

b. If Mike saves 2% of his salary each year and invests these savings at an interest rate of 8.5%, how much will he have saved by age 60? (Do not round intermediate calculations.Round your answer to 2 decimal places.) Future value $

c. If Mike plans to spend these savings in even amounts over the subsequent 20 years, how much can he spend each year? (Do not round intermediate calculations.Round your answer to 2 decimal places.) Present value $