1. [3+3XC Excel] Adam is planning to make deposits into a retirement fund earning an annual effective rate of 7%. The first deposit of $1,000 is to be made on his 38th birthday and the last deposit is to be made on his 64th birthday. Adam assumes a compensation increase of 3% annually, so that he is planning on a 3% increase in his annual deposits (first = $1000, second = $1030, etc.). On his 65th birthday, he will roll over the accumulated amount into an annuity- immediate which provides monthly payment for 25 years. Adam assumes that the nominal interest rate of this annuity will be 6% convertible monthly. Can you help Adam figure out his monthly income from this annuity? ANS: $688.123. Hints: geometric annuity immediate (i = 7%, k = 3%, PMT = $1,000,n = 27), has PV (at t=0 or age 37) of $16,063.18, then its value at age 65 (in 28 years) is $106,801.48, which needs to be the value of the annuity payments, an annuity immediate (i = 6%, n = 300), and the PMT can be calculated using Solver.