PART B

Problem 2: On her 23rd birthday, an engineer decides to start saving in a retirement fund that pays 8% interest compounded quarterly (market interest rate). She feels that $600,000 worth of purchasing power in today's dollars will be adequate to see her through her sunset years after her 63rd birthday. Assume an inflation rate of 6% per year. a) If she plans to save by making 160 equal quarterly deposits, what should be the amount of each quarterly deposit? b) If she plans to save by making end-of-the-year deposits, increasing by $1,000 over each subsequent year, how much would her first deposit be in actual dollars