For an individual that starts working at age 25 and continues to age 70, calculate the...

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For an individual that starts working at age 25 and continues toage 70, calculate the lump sum savings that the individual willhave by age 70 in both nominal and real dollars .Also calculate thelevel 30 year annuity that the individual could collect until age100 by annuitizing the lump sum at age 70. Beginning Salary is85,000.
1. Pick a starting salary at age 25. Pick an average annualsalary percent increase to age 50. After age 50 assume the salarygrows at the rate of inflation only.
2. Use a constant percent of salary saved each year.
3. Use a constant rate of inflation of 2%.
4. Use a constant annual portfolio return of 6% nominal.
5. Assume no taxes.

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Beginning Salary85000Annual increase in Salary till age 504AssumedSalary in year N1104 Salary in YearNWhere N or 25After age 50 annual increase in salary2Inflation RateSalary in year N1102 Salary in YearNWhere N25Percent See Answer

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For an individual that starts working at age 25 and continues toage 70, calculate the lump sum savings that the individual willhave by age 70 in both nominal and real dollars .Also calculate thelevel 30 year annuity that the individual could collect until age100 by annuitizing the lump sum at age 70. Beginning Salary is85,000.1. Pick a starting salary at age 25. Pick an average annualsalary percent increase to age 50. After age 50 assume the salarygrows at the rate of inflation only.2. Use a constant percent of salary saved each year.3. Use a constant rate of inflation of 2%.4. Use a constant annual portfolio return of 6% nominal.5. Assume no taxes.