13. You are 20 years old and just started your first job. After learning about personal financial planning, you would like to plan for your retirement. You plan to retire at 60 and assess that you will need $30,000 per year for 20 years in order to have a comfortable lifestyle. Bank ABC offers an annuity at a rate of return of 5% p.a. [Ignore inflation in all calculations]

A. How much will you need to accumulate by age 60 to have an annuity income of $30,000 p.a. for 20 years at a rate of return of 5% p.a.?

B. How much do you need to save and invest at the end of every year between now and age 60 if your investment portfolio of bonds and stocks can give you 8% p.a. return?