From Patreon memberships and model contracts the influencer earns on average 3300 per month. He is investing the money each month in a stock market fund (at the end of each month) that yields on average a return of 5.2% per year. He wants to stop his Social Media career in 25 years.

1. a) How much money has he saved by the end of his career?

2. b) Assume he wants to be paid an indefinite pension (by the beginning of each month)

   from accrued money. How much would he get if the interest rate would change to 3.8%?

3. c) Assuming that he does not plan for an indefinite time horizon but for a time horizon of just 45 years and wants to use up all his money in his time period. How much money would

   he get per month if the interest rate still is at 3.8%?

Exercise 3 The influencer has to decide between focusing on his career as an influencer which would lead to investment costs for equipment of 5000 and follow up costs of 300 per month (by the beginning of the month). This path would yield a net monthly income of 3400 by the beginning of the month for the next 45 years. Alternatively, he can decide to study Digital Marketing which would cost him 360 per month (by the beginning of the month) for 3 years. Afterwards his income would 3500 per month for 42 years (paid by the beginning of the month). Which of the two options should he select if his goal is to get the most out of his job. Assume a yearly interest rate of 1.3%