You are planning for retirement over the next 20 years and intend to invest $400 a month in an equity index fund and $200 a month in a bond index fund. The expected annual return on the equity and bond index fund is 9% and 3% respectively. When you retire, you will combine your money from both the equity and bond index funds into a bank account that pays an interest of 1.2% per year.

NOTE: can this question be solve using present value and future value formula?

(a) Solve the amount you will have on retirement.

(b) Solve the amount you can withdraw each month assuming a 15-year retirement period.

(c) Formulate three (3) strategies you can adopt to increase the monthly withdrawal amount during retirement period.