13) A pension plan promises to pay $75,000 at the end of each year of the retirement period.

** **

**Required:**

Compute the funds required to fund this pension plan at the start of the retirement period assuming:

a. discount rate of 9% and a retirement period of 30 years; or

b. discount rate of 9% and a retirement period of 40 years.

14) KitKat Singh is currently 30 years old and he plans to retire early, in 25 years' time. He would like to have an income of $50,000 per year during his retirement, which he anticipates will last for another 30 years. Assume that he receives the retirement income at the end of each of the 30 years.

* *

**Required:**

Determine the amount of money he will need to have accumulated by the time he starts his retirement. Assume a discount rate of 5%.

15) Saul is currently 30 years old and he plans to retire early, in 20 years' time. He would like to have an income of $60,000 per year during his retirement, which he anticipates will last for another 40 years. Assume that he receives the retirement income at the end of each of the 40 years.

* *

**Required:**

Determine the amount of money he will need to have accumulated by the time he starts his retirement. Assume a discount rate of 5%.

16) Katherina is currently 30 years old and plans to retire later in life. She would like to have an income of $35,000 per year during her retirement, which she anticipates will last for another 25 years. Assume that she receives the retirement income at the end of each of the 25 years.

** **

**Required:**

Determine the amount of money Katherina will need to have accumulated by the time she starts her retirement. Assume a discount rate of 5%.

17) Sally is currently 30 years old and is planning for her retirement. She would like to have an income of $55,000 per year during her retirement, which she anticipates will last for another 25 years. Assume that she receives the retirement income at the end of each of the 25 years.

* *

**Required:**

Determine the amount of money Sally will need to have accumulated by the time she starts her retirement. Assume a discount rate of 4%.