q1. you expect to earn $100,000 this year, your annual income to

Q1. You expect to earn $100,000 this year, your annual income to rise by 4% per year, and to work for the next 30 years. The year after you retire, you would like to receive an income of $100,000, and would like to receive the same income each year in retirement. You expect to live for 15 years after retiring. Assume that all cash flows occur at the end of each year. (a) If your opportunity cost is 10% per year, compounded annually, what percentage of your income do you need to save each year to finance your retirement? (b) How would your answer to (a) change if, after the $100,000 in the first year of retirement, you want your retirement income to increase by 2% per year to keep pace with expected inflation? (c) How would your answer to (a) change if your opportunity cost is 8% per year compounded annually?