Question: Seeing multiple answers to the same question... Please give detailed solution with right answer without excel. An explanation would be great. Daryl wishes to save

Seeing multiple answers to the same question...

Please give detailed solution with right answer without excel. An explanation would be great.

Daryl wishes to save money to provide for his retirement. He is now 30 years old and will be retiring at age 64. Beginning one month from now, he will begin depositing a fixed amount into a retirement savings account that will earn 12% compounded monthly. Then one year after making his final deposit, he will withdraw $100,000 annually for 25 years. In addition, and after he passes away (assuming he lives 25 years after retirement) he wishes to leave in the fund a sum worth $1,000,000 to his nephew who is under his charge. The fund will continue to earn 12% compounded monthly. How much should the monthly deposits be for his retirement plan?

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=+ a. The capitaloutput ratio is constant.

=+ e. What must the saving rate be to reach the Golden Rule steady state?

=+ d. What will the capitaloutput ratio be at the Golden Rule steady state? (Hint: For the CobbDouglas production function, the capitaloutput ratio is related to the marginal product of capital.)