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Your friend is celebrating her 25^th birthday today and wants to start saving for her anticipated retirement at age 65. She wants to be able

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Your friend is celebrating her 25^th birthday today and wants to start saving for her anticipated retirement at age 65. She wants to be able to withdraw exist200,000 from her saving account on each birthday for 15 years following her retirement: the first withdrawal will be on her 66^th birthday. Your friend intends to invest her money in a retirement account, which earns 8 percent return per year. She wants to make equal annual deposits on each birthday into the account for her retirement fund. Assume that the annual return on the retirement account is 8 percent before and after her retirement. Ignore taxes and transaction costs for the problem. a) If she starts making these deposits on her 26^th birthday and continue to make deposits until she is 65 (the last deposit will be on her 65^th birthday and the total number of annual deposits is 40), what amount must she deposit annually to be able to make the desired withdrawals at retirement? b) Suppose that whenever your friend makes the annual deposit to the retirement account, account, her employer will contribute exist2,000 to the same account every year as part of the company's profit sharing plan. In addition, your friend will receive a exist30,000 distribution from a family trust fund on her 25^th birthday, which she will also put into the retirement account. What amount must she deposit annually now to be able to make the desired withdrawals at retirement

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