Question #1: Suppose a recent college graduate opens a savings plan at age 23 by investing $500 each month into an account that earns 5.4% interest compounded monthly.

Part I. Suppose the plan is followed for 10 years. How much should his monthly contributions be for the following 32 years if he wants to be able to withdraw $10, 000 at the end of each month from the account from age 65-90?

Part II. Compute the total amount he expects to contribute to the account during his life.

Part III. Compute the total amount he expects to withdraw during his retirement.

Question #2: Suppose a recent college graduate opens a savings plan at age 23 by investing $500 each month into an account that earns 7.4% interest compounded monthly.

Part I. Suppose the plan is followed for 10 years. How much should his monthly contributions be for the following 32 years if he wants to be able to withdraw $10, 000 at the end of each month from the account from age 65-90?

Part II. Compute the total amount he expects to contribute to the account during his life.

Part III. Compute the total amount he expects to withdraw during his retirement.