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Age 24

years until retirement 20

years in retirement 55

inflation assumption .03

return during savings .11

return during retirement .08

current income 35,000

current retirement savings 5,000

annual contribution to retirement:

first half of years to retirement 500

second half of years to retirement 20,000

a. How much will your client have on day he/she retires?

b. How much will client be able to withdraw each year of retirement if he/she wants equal payments every year and wants to leave nothing to hiers?