Can someone assist me with this question .Much appreciated.
Today is your 50th birthday, and you anticipate that you will continue working until your
65th birthday. You currently have $50,000 in a bank account and $200,000 in shares. You
plan to add to these savings by the following annual increments:
i.depositing $2,000 a year for 10 years, and then $4,000 per year, into your bank account, the first deposit to be made today, and the last on your 65th birthday;
ii.adding $6000 to your share portfolio today, and increasing this amount by 4% per annum with the last addition on your 65th birthday.
The bank account is expected to earn 5% per annum, and the share portfolio 12% per annum.
On your retirement aged 65, you intend to deposit all your savings into an investment account that will earn 10% per annum.
What is the value of your savings on your 65th birthday (after you have made your annual deposit)?