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Question - Mr X toda has $14188 savings in bank. He wants to establish retirement fund in 5 years and feels he will need $50000 to do so.
-if he earns 12% on his money, how much will his $ 14188 be worth in 5 years?
-As per 1, how much will X have to save each year for next 5 years to accumulate money at 12% pa interest.
-If Mr X can only save $2000 a year and needs $50000 in 5 years? what expected return should he seek to grow his savings from $ 14188 to $50000. If he invests in an investment with 12% pa, how long should he plan ahead to achieve his target.
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