1. Suppose that the government contributes $6,750 per child at birth and that in addition, your family contributes $1,000 to your retirement savings at the end of each year after birth. What annual rate of return is required for you to have $5 million after 70 years?

2. Suppose that the government only contributes $2,000 per child at birth. Assuming an annual rate of return of 6%. How much additional savings would be required at the end of each year after birth (constant annual contribution) for you to have $2 million after 70 years?

3. The computations above do not account for inflation. Suppose the long-run expected annual rate of inflation is 2%. What annual rate of return would be required to achieve an 6% rate of growth in purchasing power annually?