You have just read a life-enhancing book that tells you that if you believe things will happen, they will! Youdecide that you want to become a millionaire by the time you are 65. You have just turned 22 and youdecide to play the stock market. You believe that you can earn 11.8 per cent per annum from investing inequities.

(a) How much must you invest each year in order to realize your dream?

(b) You have decided that investing each year will be boring so you just want to invest an amounttoday and leave it in an account for 43 years. How much should you invest today?