Please show your working and the formulas: (Just do Question B please)

-------

After completing his Bachelor of Communication (Major in Digital News) degree, Jamie secured a permanent position as an digital reporter writer. Jamies financial plan is to retire in 30 years from now. So, he is thinking about creating a fund that will allow him to receive $32,000 at the end of each year for 25 years after his retirement. He is expecting to earn 6.75% per annum during the 25-year retirement period.

Question:

a. To provide the 25- year, $32,000 a year annuity, calculate how much should be in the fund account when Jamie retires in 30 years.

b How much will Jamie need today as a single amount to provide the fund calculated in part (a) if he earns 6.5% per year during the 30 years preceding retirement?