You plan to retire in 35 years and want to accumulate enough by then to provide yourself with $29,000 a year for 10 years. If the interest rate is 8%, how much must you accumulate by the time you retire?

Present value

$

b.	How much must you save each year until retirement in order to finance your retirement consumption?(Do not round intermediate calculations. Round your answer to 2 decimal places.)

Save each year

$

c.	Now you remember that the annual inflation rate is 3.9%. If a loaf of bread costs $1 today, what will it cost by the time you retire? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Annual inflation rate

$

d.

You really want to consume $29,000 a year in real dollars during retirement and wish to save an equalreal amount each year until then. What is the real amount of savings that you need to accumulate by the time you retire? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Present value

$

e.	Calculate the required preretirement real annual savings necessary to meet your consumption goals.Compare with your answer to (b). (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Payment

$

f.	What is the nominal value of the amount you need to save during the first year? (Assume the savings are put aside at the end of each year.) The Thirtyfifth year? (Do not round intermediate calculations. Round your answers to 2 decimal places.)

Nominal value	$
Thirtyfifth year	$