Question 2 You are an investment professional advising your client in regards his future retirement. Your client is 30 years of age today, defined as t=0, and has just started a new job. His salary for the first year which he will receive at the end of the year, t = 1 will be $50,000. You forecast that your client's salary will increase at the steady rate of 4% per year until your client retires at age 60. If the annual discount rate is 6%, what is the PV of these future salary payments? 15 marks If your client saves 10% of his salary each year and invests these savings at an annual interest rate of 6%, how much will he have saved by age 602 15 marks ) If your client plans to spend these savings in even annual amounts when he retires at age 60, over the subsequent 20 years in retirement, how much can he spend at the end of each year? This implies your client spends his first payment at the end of his first retirement year when he turns 61 years of age. 15 marks (b) (6)