Chapter 4 Problems (30 31)30. You are saving for retirement. To live comfortabl

Chapter 4 Problems (30 31)30.
You are saving for retirement. To live comfortably you decide you will
need to save $2 million by the time you are 65. Today is your 30th
birthday and you decide starting today and continuing on every
birthday up to and including your 65th birthday that you will put the
same amount into a savings account. If the interest rate is 5% how much
must you set aside each year to make sure that you will have $2 million
in the account on your 65th birthday?31. You realize that the
plan in Problem 30 has a flaw. Because your income will increase over
your lifetime it would be more realistic to save less now and more
later. Instead of putting the same amount aside each year you decide to
let the amount that you set aside grow by 7% per year. Under this plan
how much will you put into the account today? (Recall that you are
planning to make the first contribution to the account today.)