You are just 25 years old and you have $50,000 in yourretirement saving accounts. You expect to retire at the age of 65(work for 40 more years) and expect to live for another 25 yearsafter your retirement. On the day you retire, you want to haveenough money in our retirement saving accounts such that you areable to draw $7,000 per month for 25 years. You are conservative inyour estimate of interest rate and expect to earn on an average4.5% on your money during the entire period.

A) How much you need to deposit each month throughout yourworking years to achieve your post retirement income goal, if youplan to die on the day you spend your last penny?

B) There is one more complication that you realized only at thelast day of your age 35! And the end of your age 55 (in 20 yeartime), you expect your only kid to join a top notch MBA program.You want to help your kid achieve his/her career goal and you planto give him/her an onetime grant of $125,000 when he joins theprogram. How much you need to additionally save each month from age35 onwards to achieve enough funds at the end of age 65 to meetyour original retirement income goal as well as your child'seducational goal? C) Suppose your financial situations at age 35 issuch that you cannot increase your monthly savings in the pensionaccount. If you still want to give your kid an onetime grant of$125,000 at the end of your age 55, how much reduction in your postretirement monthly income you have to absorb in order toaccommodate the additional expenditure of $125,000.