On her 23 birthday, and engineer decides to start saving toward building ip a retirement fund that pays 8% interest compounded quarterly (market interest rate) She feels that 600,000 worth of purchasing power in today's dollars will be adequate to see her through her sunset years after her 63rd bithday. Assume a general inflation rate of 6% per year.
a)If she plans to save by makeing 160 equal quarterly deposites, what should be the amount of each quarterly deposit in actual dollers?
b)If she plans to save by makind end of the year deposites, increasing by 1000 dollers over each subsequent year, how much would her first deposite be, in actual dollars?