****Please STEP BY STEP NO EXCEL HANDWRITTEN(OT TYPRD PLEASE ANSWER ALL PARTS****

Today, you will deposit a lump sum of money into a fund that pays 10% interest, to help pay for five years of future expenses. Starting 18 years from now (at the end of the 18^th period), you will make equal annual withdrawals, in constant dollars, for five years (periods 18 through 22). The amount you will withdraw is $60,000 per year, in constant value 2020 dollars. You will also need to make a one-time, lump sum withdrawal at the end of year 18, in the amount of $25,000, also in constant 2020 dollars. The inflation rate is 3.2%. Use i with constant dollars to solve part B. Draw a cash flow diagram and show your work.

1. Calculate i
2. Determine how much money you must deposit into the account?