T2+2018+ STD+EXAM+ X ew product-assessment-document/documents/product assessments/12740/12+2018 STD EXAM+ FINC20018.pdf + Question 3. This question has sub-questions, (a) and (b). Answer both. a) You plan to buy a property five years from today. You estimate you will need save $100,000 for a deposit. To achieve this target you would like to plan to direct equal annual payments into your savings account, which pays 12 % interest annually. If you make your first deposit at the end of this year, and you would like your account to reach a balance of $100 000 when the final deposit is made, how much will you have to deposit in the account annually? (2.5 marks) b) Dorothy and Peter decide to save for retirement, which is 35 years away. They will both receive an 8% annual return on their investment over the next 35 years. Dorothy invests $2,000 per year, at the end of each year for the first 10 years of the 35-year period. Consequently she will have contributed a total of $20,000 to her retirement fund. Peter however decides to wait for 10 years before he starts saving. When he starts, he will also save $2,000 per year, at the end of each year for the remaining 25 years. Consequently he will have contributed a total of $50,000 to his retirement fund. How much will each of them have when they retire? (2.5 marks) Question 4. This question has sub-questions, (a) and (b). Answer both. Ted's investment portfolio is currently valued at $750,000. The composition of his portfolio is as follows: $ Value Expected return T2+2018+ STD+EXAM+ X ew product-assessment-document/documents/product assessments/12740/12+2018 STD EXAM+ FINC20018.pdf + Question 3. This question has sub-questions, (a) and (b). Answer both. a) You plan to buy a property five years from today. You estimate you will need save $100,000 for a deposit. To achieve this target you would like to plan to direct equal annual payments into your savings account, which pays 12 % interest annually. If you make your first deposit at the end of this year, and you would like your account to reach a balance of $100 000 when the final deposit is made, how much will you have to deposit in the account annually? (2.5 marks) b) Dorothy and Peter decide to save for retirement, which is 35 years away. They will both receive an 8% annual return on their investment over the next 35 years. Dorothy invests $2,000 per year, at the end of each year for the first 10 years of the 35-year period. Consequently she will have contributed a total of $20,000 to her retirement fund. Peter however decides to wait for 10 years before he starts saving. When he starts, he will also save $2,000 per year, at the end of each year for the remaining 25 years. Consequently he will have contributed a total of $50,000 to his retirement fund. How much will each of them have when they retire? (2.5 marks) Question 4. This question has sub-questions, (a) and (b). Answer both. Ted's investment portfolio is currently valued at $750,000. The composition of his portfolio is as follows: $ Value Expected return