You just turned 28 years old today, have just received your MBA from the University of Maryland, and have accepted a new job making significantly more money. You have decided to put $15,000 per year into your 401-K plan. Assume that you will make the payments on your birthdays, starting one year from now on your 29^th birthday until your 69^th birthday, totaling 41 payments in all. Every dollar that has not yet been withdrawn from the plan is expected to earn a 7% rate of return per year. Your first withdrawal will be on your 70th birthday (42 years from today) and you plan to annually withdraw funds from the account each year on your birthday.

Question 1: Suppose that you want to make monthly withdrawals of $25,000 per month, starting at the end of the month after you turn 70. How much more must be saved at the end of each ofyour 41 years of working to enable you to make monthly withdrawals of $25,000 per month instead of the number that you found in part b? Assume that your savings continues to earn the same 7% annual interest rate?

Question 2: Now assume that the amount you can contribute to your 401-K retirement account grows 2% per year. Still assume that you make the payments on your birthday (from the time you turn 29 until the year you turn 69 totaling 41 payments in all). You will make a payment of $15,000 on your 29^th birthday; all future contributions will grow at 2% per year. Now, how much will you have in your 401-K when you retire at age 69?

Question 3: Based on your solution to d, what constant amount will you be able to withdraw at the end of each month if you want the funds to last until just before you would turn 100 (360 payments)?