Question 1 (21 Marks) Natalie celebrates her 20th Birthday today. She plans to deposit a constant amount of money in her savings account each year until she retires 45 years later at age 65 to support her retirement spending. The intere"? rate on her savings account is 10% per year. Natalie will start making these deposits on her 21st birthday and continues to make deposit each year until the last deposit on her 65th birthday. Natalie wants to be able to withdraw $40,000 from her savings account on each birthday for 35 years following her retirement until she is 100; the first withdrawal from her retirement savings will be on her 66th birthday. (c) Natalie is comparing an annuity offer by Burwood Bank that pays $2,000 on Natalie's birthday each year with 10% interest rate per year. What if Natalie received the first payment today on her 20th Birthday, and until her 100th Birthday. What is the price of this annuity offer by Burwood Bank today? (3 Marks) (d) Natalie changes her plan; she wants to have $1,000,000 in real dollars in her savings account when she retires 45 years later. The nominal interest rate is 10% per year and the inflation rate is 5%. Natalie decides to deposit a constant amount in real dollars at each birthday before she retires. Natalie will start making these deposits on her 21st birthday and continues to make deposit each year until the last deposit on her 65th birthday. How much, in real dollars, should Natalie deposit each year to achieve her goal? (7 Marks) Question 1 (21 Marks) Natalie celebrates her 20th Birthday today. She plans to deposit a constant amount of money in her savings account each year until she retires 45 years later at age 65 to support her retirement spending. The intere"? rate on her savings account is 10% per year. Natalie will start making these deposits on her 21st birthday and continues to make deposit each year until the last deposit on her 65th birthday. Natalie wants to be able to withdraw $40,000 from her savings account on each birthday for 35 years following her retirement until she is 100; the first withdrawal from her retirement savings will be on her 66th birthday. (c) Natalie is comparing an annuity offer by Burwood Bank that pays $2,000 on Natalie's birthday each year with 10% interest rate per year. What if Natalie received the first payment today on her 20th Birthday, and until her 100th Birthday. What is the price of this annuity offer by Burwood Bank today? (3 Marks) (d) Natalie changes her plan; she wants to have $1,000,000 in real dollars in her savings account when she retires 45 years later. The nominal interest rate is 10% per year and the inflation rate is 5%. Natalie decides to deposit a constant amount in real dollars at each birthday before she retires. Natalie will start making these deposits on her 21st birthday and continues to make deposit each year until the last deposit on her 65th birthday. How much, in real dollars, should Natalie deposit each year to achieve her goal? (7 Marks)