QUESTION 9 On January 1, Bob just reached age 32. He earned $100,000 at the end of last year. It is assumed that his salary will grow at 1% each year and is paid at the end of each year. Bob would like to retire when he reaches 65 (33 years from today) and expects to live 20 years after retirement. After some basic analysis, you estimate that wage replacement ratio will be 70%. During retirement, the retirement need will grow by inflation rate 2% per year and is paid at the beginning of each year. The investment return (discount rate) is 9%. Keep two decimals. Please show all your work and inputs for full/partial credits. Points will be deducted if you fail to show how you derive the final answers, even the answers are correct (a). What's the amount of first year retirement need? (8 points) (b). What's the present value of all future retirement needs after retirement at age 65, assuming that he needs the retirement funding at the beginning of each year in retirement? (show all inputs such as N, PMT, and etc.) (7 points) (c). How much is the present value of all retirement needs as of today? (d). What is the present value of all his future earnings as of today? Assuming all salaries are paid at the end of each year (show all inputs such as N, PMT, and etc.) (7 points) (e). Based on the results in (c) and (d), what should be his annual saving rate to meet the retirement needs? (3 points) Please type your answers to question (a), (b), (c), (d) and (e) below