Your friend Ellen is celebrating her 25th birthday(i.e., she is 25today) and wants to start saving for her anticipated retirement at age 55. She wants to be able to withdraw$10,000 from her savings account on each birthday for 10 years following her retirement(the first withdrawal will be on her 56thbirthday). Ellen intends to invest her money in the local savingbank, which offers8% (EAR) interest per year.

Suppose Ellen won a lottery today and decided to make one lump sum payment today to cover her retirement needs(no other deposit will bemade). What amount would she have to deposittoday?

Suppose Ellen wants to make 24 deposits with the same amount C to cover her retirement needs. She plans to start making these deposits on her 26th birthday and continues to make deposits on every birthday until she is 50(the last deposit will be on her 50thbirthday). The only exception is she will skip the deposits on her 40th birthday as she will spend the money to travel in Europe. What is the minimal amount of C will Ellen have todeposit?