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?