The insurance expert advised you to save at least 8% of your income before tax. Accordingly, this will allow you to maintain a similar lifestyle at your retirement age. Your gross income (income before tax) is R600 000 per annum. Likewise, you save the recommended amount into an annuity by way of yearly payments. The saved amount earns 10% interest, compounded annually. Calculate how much you will receive in your retirement annuity when you retire in 30 years time.

1. R6 397 976.09

2. R6 579 760.91

3. R7 724 701.13

4. R7 895 713.09