Problem 4.26 (1 pts) Suppose you have three goals in your financial planning for saving money. First you would like to be able to retire in 25 years from now with a retirement income of $10,000 (today's dollars) per month for 20 years. Second, you would like to purchase a vacation home in Sedona in 10 years at an estimated cost of $500,000 (today's dollars). Third, assuming you will live until your life expectancy, say 20 years after your retirement, you would like to leave a cash contribution to UC Merced in the amount of $1,000,000 (actual dollars) so that they dedicate a building in your name. You can afford to save $2,000 (actual dollars) per month for the next 10 years because you got a great job at an engineering firm. Assume that the general inflation rate is 4% compounded ANNUALLY and the property value in Sedona increases at an annual rate of 5% compounded ANNUALLY. Your first retirement withdrawal will be made 25 years and 1 month from now. Before retirement, you would be able to invest your money at an annual market interest rate of 10% compounded ANNUALLY. But after retirement, you will invest your assets in more conservative financial assets at an annual rate of 6% compounded ANNUALLY a) Calculate total amount you will need achieve your first goal (First you would like to be able to retire in 25 years from now with a retirement income of $10,000 (today's dollars) per month for 20 years) b) What is the required savings in each month in years 11 through 25? Show your results with a sample calculation sheet (20 pts) and a MS Excel sheet