Scott wants to save money to meet the following two objectives:

• He would like to be able to retire 30 years from now and consume $80,000 per year for 20 years, with the first payment coming 31 years from today and the last 50 years from now.
• He would like to pay his daughters education. The first payment is 12 years from now and cost is $20,000 per year (for four years).
• He has won a lottery, which will pay him $10,000 per year for 15 years (the first payment is one year from now). He will use this money for meeting the two goals.

Assume all the amounts above are in real dollars.

1. (27 points) If he can earn 8.15% nominal rates on his investments and 3% inflation every year. If he wants to meet those goals at when he retires, how much will he save each year, with the first saving starting in one year and lasting next 30 years? (Hint: Use the real rate and convert all CFs to year 30.)
2. (3 points) Because all the amounts are listed in real dollars, the answer you get in a) is how much real dollars he saves every year (like saving products or purchasing power). What is the nominal amount of dollars he saves in his fourth payment?