Your plan is to work for 30 years after graduation. You will invest yearly in a fund that pays 7%. You plan to start at the end of your first year with $7000. Historically, the company you will be working for increases salaries at the rate of 5% each year and you expect this to continue, so you will be increasing your yearly investment by the same percentage.

i. Calculate the present worth of your investment.

ii. How much will be in your investment account after 30 years of sinking money into it?

iii. This is the fun part. After getting all this money in (ii), your plan is to take them and reinvest in a low-risk funds like bonds. If you put all the amount in a fund that attracts 3% per year compounding monthly, how much equal payment will you receive every month before the funds depletes if you plan to spend all your money over a 40-year period