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Retirement Problem. (ONLY SOLVE for B or b ) A client met with a financial consultant to figure out how much she will need to

Retirement Problem. (ONLY SOLVE for B or b)

A client met with a financial consultant to figure out how much she will need to save in order to secure her retirement. There are several scenarios that the financial planner will consider.

a) In exchange of getting paid $30,000 for 8 years starting the beginning of year 6 (i.e., she will get paid $30,000 in the beginning of year 6, 7, and so on for 8 years), she agrees to set aside $x for 5 years, starting now (beginning of year 1, 2, 3, 4, 5). The interest rate is 8%. What is $x?

b) Solve for $x except that now interest rate is 5%. All other assumptions are as in a). <-------------ONLY SOLVE B or b

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