You are planning for retirement over the next 20 years and intend to invest $400 a...

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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. (a) Solve the amount you will have on retirement. (b) Solve the amount you can withdraw each month assuming a 15-year retirement period. (5 marks) (c) Formulate three (3) strategies you can adopt to increase the monthly withdrawal amount during retirement period. (6 marks) An insurance company is offering a new product in the market. This policy is intended to be bought by a parent for their child at birth. The purchaser shall make five annual payments, starting with $1,000 on the child's first birthday and increasing $200 in subsequent years. No further payments are required. When the child reaches the age of 60, he or she will receive $100,000. The annual interest rate is 5%. (d) Judge whether this policy is worth buying. 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. (a) Solve the amount you will have on retirement. (b) Solve the amount you can withdraw each month assuming a 15-year retirement period. (5 marks) (c) Formulate three (3) strategies you can adopt to increase the monthly withdrawal amount during retirement period. (6 marks) An insurance company is offering a new product in the market. This policy is intended to be bought by a parent for their child at birth. The purchaser shall make five annual payments, starting with $1,000 on the child's first birthday and increasing $200 in subsequent years. No further payments are required. When the child reaches the age of 60, he or she will receive $100,000. The annual interest rate is 5%. (d) Judge whether this policy is worth buying.