You are trying to decide how much to save for retirement. Assume you plan to save $6,500 per year with the first investment made one year from now. You think you can earn 12.0% per year on your investments and you plan to retire in42 years, immediately after making your last $6,500 investment.

a. How much will you have in your retirement account on the day youretire?

b.If, instead of investing $6,500 peryear, you wanted to make onelump-sum investment today for your retirement that will result in the same retirementsaving, how much would that lump sum need tobe?

c. If you hope to live for 18 years inretirement, how much can you withdraw every year in retirement(starting one year afterretirement) so that you will just exhaust your savings with the 18th withdrawal(assume your savings will continue to earn 12.0% inretirement)?

d.If, instead, you decide to withdraw $1,254,000 per year in retirement(again with the first withdrawal one year afterretiring), how many years will it take until you exhaust yoursavings? (Usetrial-and-error, a financialcalculator: solve for"N", orExcel: functionNPER)

e. Assuming the most you can afford to save is $1,300 peryear, but you want to retire with $1,000,000 in your investmentaccount, how high of a return do you need to earn on yourinvestments? (Usetrial-and-error, a financialcalculator: solve for the interestrate, orExcel: functionRATE)