1. Mike currently 35, has $15,000 saved for retirement. He is currently saving $450 at the beginning of every month and his employer matches his total savings contribution on a monthly basis. Mike projects that he could earn 7% on his savings. He plans to retire at 65 and expects to live until age 90. His current expenditure on basic needs at the beginning of every month is $2200 every month which is expected to increase with inflation of 4%. How much would be shortfall or excess in his retirement account?
$337,138 shortfall
$334,475 excess
$337,138 excess
$334,475 shortfall
please provide steps for the financial calculator.
2. What is the present value of $3,000 paid at the end of each of the next 78 years if the interest rate is 4% per year? The present value is _(round to the nearest cent).