Lee is 26 and wants to retire at 65 with a retirement fund from which he can draw an interest income of $150,000 a year. He assumes he will have an average rate of return of 6%. He wants to know how much he needs to save each month to reach his goal and how inflation will affect his retirement savings. In order to earn $150,000 per year in interest, the balance of Lee's retirement account must be large enough that 6% of the balance is $150,000. Lee finds a 401K retirement account with a 6% rate of return compounded monthly. After retirement he wants to live off of the interest from the account. Find the balance Lee needs to have in his account.

1. which one of the following would be an example of a supply-side market failure? a. a gas station is slowly leaking diesel fuel from its underground tanks, and after the leak is discovered, the business immediately cleans up the pollution at its own expense. b. a gas station is slowly leaking diesel fuel from its underground tanks, but the state uses taxpayer money to clean up the pollution rather than requiring the business to pay. c. your business wants to attract repeat customers by putting on a customer-appreciation picnic at a public park, but you decide not to because you couldn't prevent noncustomers from consuming the food and entertainment you provided. d. everyone rushes to the local retail outlet at midnight on the day of the release of a new video game console, and the store runs out before everyone is able to buy one.