On the day you retire you have $$500,000$ saved. You expect to live another $30$ years during which time you expect to earn $8\%$ on your savings while inflation averages $3\mathrm{.}5\%$ annually. Assume you want to spend the same amount each year in real terms and die on the day you spend your last dime. What real amount will you be able to spend each year?

a$.$

$$61,931\mathrm{.}78$

b$.$

$$30,695\mathrm{.}77$

c$.$

$$79,644\mathrm{.}58$

d$.$

$$79,211\mathrm{.}09$

Now consider your financial objective is to save $$500,000$ for preparing your retirement, assuming $30$ years from now. If you invest your RRSP savings in a mutual fund which can realize an average return of $10\%$ per year. To achieve your goal, how much do you need to save at the end of each year over the $30-$year period?

O a$.10,988\mathrm{.}32$

b$.2,985\mathrm{.}54$

Oc$.4,039\mathrm{.}26$

d$.3,039\mathrm{.}62$