Please use PV, FV, R, PMT, N when answering.

1. Your best friend Frank just celebrated his 30th birthday andwants to start saving for his anticipated retirement. Frank plansto retire in 35 years and believes that he will have 20 good yearsof retirement and believes that if he can withdraw $90,000 at theend of each year, he can enjoy his retirement. Assume that areasonable rate of interest for Frank for all scenarios presentedbelow is 8% per year. This is an annual rate, review eachindividual question for more specifics on compounding periods peryear. Because Frank is planning ahead, the first withdrawal willnot take place until one year after he retires. he wants to makeequal annual deposits into his account for his retirement fund. Weare now back to Frank staring his retirement investments one yearfrom now (35 years to retirement). Suppose Frank's employer willcontribute $2,000 to the account each year as part of the company'sprofit sharing plan. In addition, assume that Frank has a trustfund that will pay out $25,000 to him when he is 50 (20 years fromnow). What amount must he deposit annually under these assumptionsto be able to make the desired withdrawals at retirement? To findthe amount of the annual deposit now, it is easier to break downthe components of the problem. Doing so for each of the followingto find your friend's annual deposit, we get:

D1) Value of employer's contribution at retirement :

D2) Value of trust fund at retirement :

D3) Remaining amount that Frank needs at retirement:

D4) (Final answer) Amount to save each year under theseassumptions