The Controller of I3 Technologies Inc. is 40 years of age and his salary next year will be $150,000.He forecasts that his salary will increase at a steady 5% per year until his retirement at age 55.Answer the following questions.

1. If the discount rate is 9%, what is the present value of these future salary payments?
2. If he saves 15% of his salary each year and invests these savings at an interest rate of 9%, how much money will he have saved by age 55?
3. If he plans to spend these savings in equal monthly amounts over the next 15 years, how much can he spend each month?Assume that when he retires he transfers the money into a money market account earning 3% per year with monthly compounding. Additionally, assume that withdraws are at the end of each month and that his first withdraw is at the end of January in his 56th year.