Today is your 24 ^th birthday. Your goal is to retire when you turn 70 years old and have sufficient monthly income until your expected demise on your 99 ^th birthday. In order to realize your goal, you are planning to make deposits into a target-date retirement fund that is expected to generate 7.2% annual return, compounded monthly. You want to be able to make monthly withdrawals from this fund starting one month after your retirement until your expected demise. These monthly withdrawals will increase by 0.2% a month in order to compensate for the expected increase in price levels. Retirees are able to survive on $3,000 monthly income today. Your first withdrawal one month after your 70 ^th birthday, therefore, will be $3,000 adjusted for 0.2% expected monthly inflation.

You are planning to make equal annual deposits starting one year from today until you retire. Calculate your deposits.

You are planning to make annual deposits starting one year from today until you retire. You believe that you can increase your deposits 3% a year in line with the expected increase in your income. Calculate your first deposit.

You are expecting inheritance money in the amount of $250,000 when you turn 50 years old and planning to deposit this amount immediately into the fund. Based on this expectation, recalculate your answer to part b .