Retirement Savings v3 (15p) You have determined that you will need at least 3 000 000 SEK in private pension savings when you retire in 40 years. You plan to set aside a series of payments every year in an account yielding 11% per year to reach this goal. You will put the first payment in the account a year from today. a. If you make the same payments every year, what would your yearly payment be? Answer in SEK amount with two decimals (i.e. 508123.44). SEK b. Assume now that your first payment would be 3000 and that the payments would increase with 5% per year as your salary increases. What would be the new balance in your pension account after 40 years? Answer in million SEK with two decimals (i.e. 3.45, not 3 450 000). million SEK c. Assume as in b. a first yearly payment of 3000 and yearly increase of the amount of 5%. What would be the final payment into this pension account be? Answer in SEK amount with two decimals (i.e. 508123.44). SEK

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Part a The annual payments constitute an ordinary annuity Periodical payment of ordinary annuity P F... View the full answer