Today, the most important vehicle for saving for retirement in the US is the retirement plan known as 401K. 68% of employees have access to this type of savings, but only 50% use it. These programs are administered by private financial companies such as Vanguard, Fidelity and others. For example, Fidelity administers the University of Miami's 403b retirement plan for its employees. The retirement plan is called 401k for private companies and 403b for nonprofit organizations. Let's assume that Elena is 35 years old and that, in one year, upon turning 36, she will begin saving US$10,000 in her 401k account for her retirement. Elena expects that her salary will increase each year and she will then be able to increase her savings by 5% per year. The 401K retirement plan earns Ellen a 10% annual rate on her savings.

Develop and respond:

A. Cash flow diagram

B. How much will Ellen have in her account when she turns 65?