Calculate Total Investment Value, Future Investment Value, and Retirement Withdrawal Amount

Requirement 1:  

If you do not save another cent for the next 15 years, how much money (in total) will you have at the end of the 15 years? show all your working. 

1. What is the value of the Share Portfolio?  (2 marks)

2. What is the value of the Superannuation Fund?  (2 marks)

 

3. What is the value of the Savings Account? (2 marks)

 

4. What is the total value of your investments? (1 mark)

 

Requirement 2:

If you invest $12,000 every year in your superannuation fund for the next 15 years starting at the beginning of next year, how much more money you will have at the end of the 15 years? 

 

Requirement 3:   (4 Marks)

Using your answer from Requirement 1:

a. Assume that you expect to live another 25 years after retirement (i.e., until age 90). If you take your total investments at retirement and invest it in an account paying 8 percent interest compounded annually, how much can you withdraw every year for those 25 years?  (2 Marks)

b. If you wanted a perpetuity, how much will you be able to withdraw?