QUESTION
Marks
Case Study Retirement Planning
John is a yearold professional planning for his retirement. He wants to assess the financial impact of different investment scenarios. He's considering investing a lump sum amount and wants to compare two options:
Option A: Invest R today for years.
Option B: Invest R per year for years.
Required:
John's expected annual interest rate is Help John evaluate both investment options using present Marks value PV and future value FV calculations. Calculate and compare the following for each option:
The Future Value FV of the investment at the end of years.
The Present Value PV of the investment if applicable
You plan to buy a house worth R and you currently have R saved for this goal. If you can Marks invest your savings at an annual interest rate of how long will it take for your savings to grow to the required for purchasing the house?
END OF PAPER
