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QUESTION 2 [15] An investor wishes to retire in 30 years' time. Although, the investor is due a pension from her employment, she wishes to
QUESTION 2 [15] An investor wishes to retire in 30 years' time. Although, the investor is due a pension from her employment, she wishes to augment this by acquiring a further pension of R10 000 per month by contributing to a retirement fund. She wants to: Receive a monthly pension income of R10 000 per month for 20 years Receive a lump sum payment of one quarter of the accumulated sum on retirement. Additional information The fund is currently earning a return of 10% per annum, interest compounded monthly. The return is expected to remain unchanged and to be sustainable over the next 50 years. Required Determine the monthly contribution that the investor is required to make to the retirement annuity fund over the next 30 years
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