Please show the formulas used.

Q2 (10 points). Bob is 22 years old college graduate and his initial wealth is zero but will receive a bequest of $25000 from his grandmother. His annual income after graduation is $55,000 for the first five years. After that, he expects to get a promotion with an annual income of $100,000 for the rest of his working years that will last for 40 years. He expects to have two children and each will cost him $200,000, living expenses and costs in education. He expects to live up to 83. His wife is 20 years old and expects to earn an annual income of $70,000 for her working years of 45 years as a nurse. Her life expectancy is 85. The couple wants to give their children a bequest of $150,000 each. Answer the following questions for Bob's family: 1. a) (4 points). What is the total consumption expenditure for the family? 2. b) (3 points). When Bob is 30 years old, what is the total wealth of the family? Assume that the bequest of $25,000 is not available. 3. c) (3 points). What is the annual saving for the family