only question 4 please and show your work

Sam turned 30 today and his salary last year at GGC Inc. was $40,000 which he expects to grow at 3% per year until his planned retirement at age 65 . He has recently received an inheritance of $100,000 in cash. When he retires at age 65 , Sam would like to have the most money possible and is looking at two different investment options. Sam's retirement will be funded by both the inheritance and savings from his employment income. Option 1: The first option contemplates investing all of his $100,000 inheritance in a risk-free fund today and holding this investment until he retires at age 65 . This fund will earn interest of 4% per year (compounded annually) throughout the entire period. Additionally, starting one year from today Sam will invest 5% of his salary each year in a mutual fund with an expected rate of return of 6% per year (compounded annually). Sam's last payment into the mutual fund will be on his 65th birthday. Option 2: Sam has the opportunity to upgrade his education by starting a two-year MBA program today for a cost of $40,000 payable today. He would pay the fees for the MBA program out of his inheritance and invest the remainder in a risk-free fund which would earn 4% per year (compounded annually) and be kept invested until retirement at age 65 . Although Sam will not earn his income during the 2-year MBA program, he expects that on completion of the program (in the 3rd year) he would earn $60,000 per year growing at 4% per year and be able to save 6% of his salary to invest in the mutual fund at a 6% rate of return per year (compounded annually). The savings invested in the mutual fund will start three years from today and the last deposit will be on his 65th birthday. 4) On his 65 birthday, Sam intends to invest all his savings in an annuity which will provide retirement income for 20 years with the first payment 1 year after retirement. The investment will earn a rate of return of 6% per year and is expected to use up all his savings and earned interest at the time of the 20th payment. How much income will Sam be able to have per year in his retirement? 6 points