At the age of 30 Fran Frugle has finally graduated from university and will be starting a new job in the treasury department of a major Canadian corporation.She wants to retire in 30 years.She expects to live for 20 years in retirement.She wants to receive $4,000 at the end of each month during her retirement.

In addition to her retirement needs, she is planning to have a mid-life crisis 15 years from now.As such, she will take one year off from work and will spend $50,000 to book and travel a one year world tour.Upon her return, she will work 14 years until her retirement.

During her 29 working years (i.e. 15 years before the trip and 14 years after the trip) she will makeequalend of month deposits to fund both the world tour and her retirement.

She can earn 5% EAR on her investment account.

Required:

How much must she save every month during her working years in order tohave enough money to fundbothher retirement and mid-life crisis?