Please use the tables provided in appendix A, B, C, and D as needed to solve the following problem.

Alex would like to accumulate $1,000,000 to cover life expenses during retirement. Alex expects to retire in 30 years, and expects to live for 20 years thereafter. Inflation over the next 30 years is expected to average 2% per year, and the average rate of return on pre-retirement aggressive investments over the next 30 years is 15%. After 30 years, the average rate of return on more conservative post-retirement investments is 7%.

1. Calculate the present value amount that Alex would need to deposit today to meet the goal of accumulating $1,000,000 adjusted for inflation. Use a time-line to illustrate the problem (12.5 points).
2. Calculate the annual withdrawal amount that Alex will need to make on an annual basis while on retirement to use up his retirement savings over 20 years. Use a timeline to illustrate the problem. Assume that withdrawals are made at the end of each year (12.5 points).