【General guidance】The answer provided below has been developed in a clear step by step manner.Step1/2a)(i) If Account A starts to pay interest one year after his retirement, Carter will need to deposit a lump-sum amount such that it can grow to $120,000*(1/0.05) = $2,400,000 in 29 years (since the interest is not paid in the first year). Using the formula for the future value of a lump sum investment:FV = PV*(1+r)^nwhere FV is the future value, PV is the present value (the lump sum Carter needs to deposit), r is the interest rate, and n is the number of years, we can solve for PV:PV = FV/(1+r)^n = $2,400,000/(1+0.05)^29 = $734,367.89Therefore, Carter will need to deposit $734,367.89 in Account A at the beginning of his retirement to be able to withdraw $120,000 every year for 30 years.(ii) If Account A starts to pay interest on the day of his retirement, Carter will need to deposit a lump-sum amount such that it can grow to $120,000*(1/0.05) = $2,400,000 in 30 years. Using the same formula as above:PV = FV/(1+r)^n = $2,400,000/(1+0.05)^30 = $1,047,128.92Explanation:Therefore, Carter will need to deposit $1,047,128.92 in Account A at the beginning of his retirement to b ... See the full answer