Question #$5$: Assume that you are $25$ years old today, with zero financial capital and no debt. You

plan to spend the next year travelling around the world. $($All costs paid by your parents.$)$ Then, at

age $26$ exactly you will get your first full$-$time job earning a base rate of $$60,000$ per year $($after$-$

tax$)$ paid annually until the age of $30.$ During those first $4$ working years, you will get a raise of

$2\%$ per year. At age $30$ you plan to return to graduate school and get an advanced degree. This

degree will take you two years to complete and cost $$50,000$ up$-$front each of the two years. When

you graduate at the age of $32,$ you will return to the labor force and earn a base rate of $$120,000$

per year $($after$-$tax$)$ which will then increase by $3\%$ each year until you retire at age $65.$

Part A: What is the value of your gross human capital $($ignoring implicit liabilities$)$ today

assuming a $4\%$ valuation $($interest$,$ investment$)$ rate, at age $25?$

Part B: What is your optimal $($flat$)$ consumption amount starting from today $($age $25),$ assuming

you plan to live to $95?$ Make and state any assumptions.

Part C: What is your savings rate in your last working year, at age $64?$

Part D: What will be the value of your financial capital $($nest egg$)$ at retirement, age $65?$

show me the ans and working specifically for part D