Simone is now 50 years old and plan to retire at age 67 (in 17 years). She currently has a share portfolio worth $750,000, a superannuation fund worth $1,200,000, and a money market (similar to cash) account worth $500,000. Her share portfolio is expected to provide annual returns of 12% p.a. (compounded annually), her superannuation will earn her 9% p.

a). (compounded annually), and the money market account earns 1.2% p.a. (compounded monthly). Assume all these returns are aftertax. Assume Simone’s superannuation contribution is $25,000 (after-tax) per year for the next 17 years (starting 1 year from now).

b). As a philanthropist, Simone makes $500,000 annual donation (from her before-tax income at the moment) to Karl AIDS Research Foundation. Assume that Simone expect to live 23 years after she retires (until age 90). To maintain the life style as a socialite, Simone expects the annual living expense would be $500,000. At age 67, Simone will transfer all her investments into a trust account that pays 8% p.a. (compounded annually), and make the first withdrawal of living expense. After retirement, Simone will receive no income other than withdrawal from this trust account. Will Simone be able to keep on making the same $500,000 annual donation after her retirement (till age 90)? The donation will make her income from trust account tax-free.

Need complete the formula and calculation process.