Mini-Case Cameron Williams. 25. is a very organized person. He has re- a very young age and has saved a total of 30,000, which has cently joined his first full-time job, which pays him 35.000 been invested in government bonds paying 3 percent per annum. per annum, and now wants to ensure that he saves for all his He also wants to go on a round-the-world trip before he future life goals. His employer participates in a workplace pen- turns 30. He has estimated that this will cost him around sion scheme and matches up to 4 percent of salary contribution 22,000. He expects to save 8,000 in the next three years and toward the pension. Cameron also wants to buy a house as soon take a personal loan for the remaining amount to achieve his as possible and feels that he will need 20,000 as a down pay- dream holiday plan ment toward his first home. He has been working part-time from 4 3. What will be the value of his savings if he withdraws 20,000 for his house purchase when he is 30 and leaves the remaining in the same investment till he retires at the Questions 1. Explain to Cameron how much an investment of 10,000 will grow in 40 years if it earns 8 percent per annum and advise if it's beneficial for him to join his pension plan as early as possible. 2. Assuming that he can earn 6 percent on his savings, how much does Cameron need to deposit now to cover the amount of his contribution in three years' time? How much will he need if he can earn 11 percent on his savings? age of 652 4. How are compounding and discounting related? 5. Suggest two ways by which Cameron can have a higher amount available to him at the time of his retirement