(a) Kim Yee is 30 years of age and he visits his financial planner. He tells his financial planner that he would like to have $10,000 per month in his retirement. (He retires at age 60 and is expected to live till 100). When he is 45, he will receive $200 000 from his grandmother and will invest in retirement account. How much should Kim Yee save each month to realise his “retirement dreams”? Interest rate is assumed at 6% compounded monthly.

(b) If interest rate increased to 8% would Kim Yee have to save more? Explain

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a Calculation of Month Savings If Kim requires 10000 per month the amount required for each year wil... View the full answer