Q2 The future value of an investment account, where the individual chooses to deposit a fixed sum of cash over a specific number of periods, is found to obey the following relationship: ((1 + x)N 1 FV = PM(1 + x) where FV is the future value of the investment account, PM is the payment made per period, x is the interest rate gained on the investment per period, and N is the number of periods for which 1+ (**= 1 ) the cash is invested. Using this information determine the following (a) Make N the subject of the equation (b) The average monthly net income in Ireland is currently 2539. If an employee earning this wage wants to retire at 50 years of age, an estimated 2 million of additional savings is required. Considering that an average employee (age = 23 years old) can save approximately 50% of their net earnings, can they reach this retirement target by only investing in the S&P500 index, whose average annualised interest rate ~10%? (c) If the same 23-year-old individual maintains the level of saving and investment strategy outlined in part (b), but now wants to retire at the earlier age of 40 years of age, how much do they need to invest per month to achieve this ambitious goal? You can assume an additional 125000 is required for every additional year under 50 years of age. Q2 The future value of an investment account, where the individual chooses to deposit a fixed sum of cash over a specific number of periods, is found to obey the following relationship: ((1 + x)N 1 FV = PM(1 + x) where FV is the future value of the investment account, PM is the payment made per period, x is the interest rate gained on the investment per period, and N is the number of periods for which 1+ (**= 1 ) the cash is invested. Using this information determine the following (a) Make N the subject of the equation (b) The average monthly net income in Ireland is currently 2539. If an employee earning this wage wants to retire at 50 years of age, an estimated 2 million of additional savings is required. Considering that an average employee (age = 23 years old) can save approximately 50% of their net earnings, can they reach this retirement target by only investing in the S&P500 index, whose average annualised interest rate ~10%? (c) If the same 23-year-old individual maintains the level of saving and investment strategy outlined in part (b), but now wants to retire at the earlier age of 40 years of age, how much do they need to invest per month to achieve this ambitious goal? You can assume an additional 125000 is required for every additional year under 50 years of age