Question 2 Sarah has just finished her studies, and has started her career by accepting a position at an online learning company. Being a forward-thinking young woman, she is already looking ahead to her retirement, and wants to start putting money away now. She wants to retire 30 years from now, and wants a lump sum of R3 million at that point. To allow her to plan effectively, and to keep things simple, she wants to put away the same amount for the full period, at the end of each year. Using the tables, and showing your workings clearly, answer each of the following questions: 2.1 Assuming that she receives an average growth rate of 9% p.a. for the period, how much does Sarah need to put away at the end of each year? CHA 2.2 if she were to invest a lump sum now instead, to reach R3 million in 30 years, which also grew at 9% p.a., compounded annually, how big would this lump sum need to be? Start writing here: 2.3 At retirement, if she were to then take that lump sum of R3 million and buy an annuity. that would pay out annually for 20 years, and have a guaranteed annual return of 12%, how much would she receive every year? Start writing here: 2.4 When looking ahead to retirement, one always needs to take into account the effects of inflation. Using the answer from question 2.3, and with an average annual inflation figure of 6% over the period, what would the value of the fifth one of these annuity payments received (received exactly 35 years from now) be worth today? Start writing here