Today is John's 25th birthday. He expects to retire at age 62 (the day he turns 62, i.e., on his 62nd birthday) and live until 90. Starting on his 62nd birthday and ending on his 89th birthday, he will withdraw $45,000 for annual living expenses. Assume annual interest rate to be 4.5%.

A) How much will he need to have saved by his retirement date (i.e., amount required on 62nd birthday) to be able to spend the required amount in retirement? Use the timeline method to solve this. (6)

B) He starts saving for this goal today with the intention of saving an equal amount each year. Each amount is deposited at the beginning of the year. The last payment will be made on the 61st birthday. Withdrawal starts as expected on the 62nd birthday. How much should be saved each year? (2)