Problem 2: You want to save for retirement by making 40 equal annual contributions of $10,000 with the first one at age 26 and the last one at age 65. Then you plan to make annual withdrawals for 35 years with the first withdrawal at age 66 and the last one at age 100. If your funds earn you a risk-free interest rate of 5%, how much will be your annual withdrawals at retirement? A) $11,429 B) $35,514 C) $38,874 D) $70,400 E) $73,774 Problem 3: Using the information in question 2, assume you ve got an unexpected medical bill of $40,000 when you went for you 80th birthday for a vacation to Florida with your college friends but got hurt while doing parasailing. As a result you had to withdraw an extra $30,000 from your retirement account at age of 80, but you still want your money to last till your 100% birthday. By how much you will have to decrease your future annual cash withdrawals starting from your 81" birthday? A) $1500 B) $2000 C) $2407 D) $2874 E) $3218