Estimate the projected future value of the managed fund

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To help plan for their retirement, Mary has recently purchased a 20-year endowment insurance with a yearly premium of $4,000 and a projected maturity value of $170,000. She has also invested $10,000 into a managed fund with a projected return of 8% per year.

(a) Estimate the projected future value of the managed fund in 20 years' time and compute the projected annualised returns of the endowment insurance.

(b) Mary was also introduced to an annuity product. Discuss the main features of an annuity, an endowment insurance, managed fund and how they could help in the retirement planning of Mary

Reference no: EM132402958

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