Prof. Business has a self-managed retirement plan through her University and would like to retire in 13 years and wonders if her current and future planned savings will provide adequate future retirement income. Here are her information and goals. Prof. Business wants a 23-year retirement annuity that begins 13 years from today with an equal annual payment equal to $90,000 today inflated at 2.5% annually over 13 years. Her first retirement annuity payment would occur 13 years from today. She realizes her purchasing power will decrease over time during retirement. Prof. Business currently has $400,000 in her University retirement account. She expects these savings and any future deposits into her University and any other retirement account will earn 7.5% compounded annually. Also, she expects to earn this same 7.5% annual return after she retires. Answer the following questions to help Prof. Business finalize her retirement planning. 1. What is Prof. Business' desired annual retirement income? 2. How much will Prof. Business need 13 years from today to fund her desired retirement annuity? 3. In addition to the $400,000 balance today, Prof. Business will fund her future retirement goal from question 2 by making 13 annual equal deposits at 7.5% compounded annually into her retirement accounts starting a year from today (the last deposit will be made when Prof. Business retires). How large does this annual deposit need to be in addition to the initial $400,000 invested in Prof. Business' retirement fund? 4. This annual figure from question 3 makes Prof. Business feel a little anxious about her future planned retirement since her current annual contribution is $14,600. Also, Prof. Business' annual retirement account contribution is based on a percentage of her salary and will increase as her salary increases. However, Prof. Business is worried about her purchasing power eroding during retirement. She would like her first retirement withdrawal to be equal to the amount you found in question 1, and then she increases each successive retirement withdrawal by 2.5% annually over the remaining 22 withdrawals. How much will Prof. Business need now at retirement given Prof. Business' 7.5% expected return