Suppose Mr. Shineman informed you that he will be going on retirement in 5 years from now.

He wants to increase his regular contributions for the remaining periods. At the beginning of the 1s year, he contributed GHS 1,200 and GHS 1,450 at the beginning of the 2nd year. He increases the contributions to GHS 2,800 at the beginning of 3rd year and to GHS 3,508 at the 4th year. Towards the end of the St year, he could not contribute any amount but rather withdrew an amount of GHS 7,547 to settle emergence needs. The frequency of the interest rates for various years are such that they kept varying. In year 1,

Using the simple interest rate, calculate the future value of Mr Shineman and explain your results in relation to the effect of the withdrawal he made getting to the end of the period.

Using the compound interest, compute the future value for Mr Shineman and what advice would you give to Mr Shineman.

Calculate the quarterly compounded future value of Mr Shineman and consider the situation that he roll-over the funds at the beginning of the 5th year to the year end at a T-bill rate of 13.5% without making any withdrawal.

Distinguish between:

1. Financial assets and real assets
2. Fixed income and derivatives