We have the following information and assumptions about Ted's retirement planning process.

Current Salary: $58,000

Current Age: 26

Wage replacement ratio at retirement: 67%

Expected Retirement Age: 67

Inflation (both pre- and post-retirement: 2.5%

Life Expectancy: 90

Pre-retirement Nominal Return: 8.25%

Post-retirement Nominal Return: 6.5%

Ted has determined that based on current inflation, his first year needs in retirement will be $106,950.

A) Calculate the assets Ted will need at retirement to provide for his income needs throughout his retirement years.(Show numbers.)

B) Calculate the annual amount Ted will need to save in order to reach his asset goal at retirement.Assume Ted has no current retirement savings.(Show numbers.)