Anna is planning to save $2 million for retirement over the next 35 years.

1. If she is earning interest at a rate of 10% compounded quarterly, how much money should she deposit each quarter?

2. If she lives 25 years after retirement, what annual level of living expenses will those savings support? (assuming the same interest rate: 10% compounded quarterly)

1. Suppose her retirement living expenses will increase by $6,000 each year due to inflation. Determine the annual spending plan in line with inflation.

Answer rating: 100% (QA)

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