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Ms . Reti Rement is currently 3 5 years old and has an annual income of R 8 5 0 0 0 0 from her
Ms Reti Rement is currently years old and has an annual income of R from her small business. She figures her income will grow by per year for the
next years, by which time she plans to retire. She does not belong to a pension or provident fund.
What will her final income at retirement be Once Reti has retired, she reckons she will only need of her final income to live comfortably. Although one cannot predict these things, Reti has looked up life insurance statistics and found that her life expectancy is years. What capital amount will Reti need to invest at retirement to provide for her remaining years if the growth rate on the capital is per annum? Assume inflation will be per year. How does this number compare to the rule of thumb provided in the lectures? Comment on the difference, if any. If Reti only starts saving now, how much should she put away each month to ensure the required capital amount at retirement, assuming a growth rate of per annum? Do you think Reti will be able to afford the required monthly saving? If Reti started saving when she was how much should she then have put away per month until retirement? What is your conclusion from this?
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