Pamela, 40, is single and works as a dentist in a dental partnership with 3 other dentists. Pamela makes $200,000 a year and has the following assets as of today. Pamela has a yearly expense of $100,000. Cash in bank = $100,000 Private property = $1,500,000 Unit trusts investments = $50,000 (a) Assuming inflation is 3%, compute Pamela's expenses in 10 years' time.

(b) Assuming her private property will appreciate in value by 5% each year, estimate the market value of her property in 20 years' time.

(c) Pamela would like to phase in her retirement over 2 stages. Stage 1 - From age 41 to 50 years old, Pamela will continue to work at the current pace. Her present income of $200,000 per annum is expected to grow at 10% per annum during this time. Stage 2 - From age 51 to 60 years old, Pamela intends to work 3 full days per week only. She anticipated her last drawn income at age 50 will be halved as a result of working part time. During this 10 years' period, her income would grow at 5% only. Estimate Pamela's income when she turns 60 years old.