Rick James turned 37 years old. He expects to earn a 4% annual return above inflation on his investments. Rick wants to retire at 67 and his life expectancy is 90. Assume Rick has been contributing to his IRA for a time and accumulated $80,000 based on past contributions and investment returns.

a. If Rick makes the maximum allowed contributions worth $6,000 to his IRA at the beginning of each year (1st deposit today, last deposit on his 66th birthday), his first withdrawal is on his 67th anniversary, and his last withdrawal is on his 89th anniversary, how much could Rick withdraw annually in his retirement, assuming that he is content to have a zero balance in the account on his 90th birthday?

b. Assume that Rick is uncertain about the rate of return on his investments and his life longevity. To make sure he does not run out of money while alive, Rick will modify his planning to allow for a remaining balance of $300,000 in his IRA as of his 90th anniversary. How much can Rick safely withdraw per year from the account each year in retirement?