Suzane is 30 years old and would like to maximize the amount she cam deposit into her retirement account, however she is limited in the amount she can deposit. The IRS limits the maximum deposit amount and she has leftover student debt that also limits her deposit rate. The IRD limit ius $18,500 today and is expected to rise by the cost of iunflation at 2.5% per year. Because of her student debt Suzanne can only deposit $6,000 per year for the first six years. On year seven she will be able to deposit the maximum allowable amunt byu the IRS into her account and is expectiung to do so for 20 consecutive years. The expected rate of return on this account is 8% per year compounded annually.

What is the maximum deposit she will be allowed by the IRS in year seven?

a. How much money will have accumulated in her account after 26 years?

b. Since she can only begin withdrawing fromn her retirement account after age 59 and since she expects to live to the average life expectance of 88 years, what is the equivalent uniform annual amount she can withdraw from this account if she expects to withdraw this account completely over her remaining life exoectancy? consider that the account continues to return 8% per year compounded annually.

Draw the cash flow diagram