You are 50 years old, having a long experience in finance, you larded a job at ENBD. Your salary is AED500,000 per year, and your contract is for 5 years. Your salary will stay the same during the 5 years and, since you are working in UAE, you are not subject to taxes. If you do well (which we assume will happen with certainty, you will get a contract renewal for 5 years. Under this contract, your salary will grow at the rate of 3% per year, until retirement at 60 years old salaries are paid at the end of each year Year Salaries 1 500,000 2 500,000 3 500,000 500,000 5 500,000 500,000(1+3%) 6 +++++ 10 1. Assuming an interest rate equal to 6%, calculate your human capital value during this period? (the PV as of today) of all your future earnings? (1,5 Marks) Year Salaries 1 500,000 2 3 500,000 500,000 500,000 4 5 500,000 6 500,000(1+396) 10 1. Assuming an interest rate equal to 6% calculate your human capital value during this period? (the pv af of today) of all your future earrings? (1.5 Marks) 2. Assume that you spend 70% of your salary, and deposit the remainder in a savings account, which pays the rate 66. Estimate how much money will you have in the savings account just after you received your fifth salary (end of year 5) (15 Marks)