Question: PLEASE SHOW WORK FOR EACH QUESTION. 4. Your client is 25 years old today and plans to retire at 65 . She wants to start

PLEASE SHOW WORK FOR EACH QUESTION.

4. Your client is 25 years old today and plans to retire at 65 . She wants to start saving money through a 401K plan ofiered by her employer by investing $8,000 per year starting today. You recommend a stock mutual fund account that is expected to generate a rate of retum of 10.5% anmually. a. Assuming monthly interest compounding, what is the EAR on this investment? How much money will your client have when she retires at 65 ? b. If you client lives 20 years after retirement, how much will she be able to generate in income per year? Assume the same interest rate of 10.5% and monthly compounding. c. Your client is also taking out a 20-year mortgage in the amount of $700,000 today. The annual percentage rate is 4.2 percent per year, Your client plans to stay in the house for 7 years and then relocate to a different state then. What will be her mortgage payoff amount (mortgage balance) in 7 years? Show all your calculations by listing the correct inputs and output on your financial calculator

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