After completing the Bachelor of Accounting degree, suppose you secure a permanent accountant position. You drafted a financial plan to retire in 30 years from now. So, you are thinking about creating a fund that will allow you to use $30,000 at the end of each year for 25 years after your retirement. The interest rates are expected to be 0.90% per annum during the first ten years and 1.25% per annum during the next twenty years of your pre-retirement period. The interest rates during the retirement period are expected to be 1.45% per annum.

Required:

a) To provide the 25- year, $30,000 a year annuity, calculate how much should be in the fund account when you retire in 30 years.