Retirement Savings Investment Assignment

Kenny is planning for retirement in 20 years. Currently, he has $300,000 in a savings account and $600,000 in a mutual fund. Moreover, he plans to add to his savings by depositing $3,000 per month in his savings account at the beginning of each month for the next twenty years until retirement. The savings account will return 5% APR compounded monthly and the investment in the mutual fund will return 8% compounded annually.
(a) How much money will Kenny have at retirement 20 years later? (8 marks)
(b)Kenny expects to live for 20 years after he retires and at retirement he will
deposit all of his savings in a bank account paying 2% APR compounded
monthly. If he wants to withdraw an equal sum of money at the end of
each month from the bank account for financing his daily expenses after
retirement, how much can he withdraw each time?
(c)If the yield to maturity of a bond is higher than its coupon rate, the par
value of the bond should be higher than its price, resulting in a discount
bond. Conversely, if the yield to maturity of a bond is lower than its
coupon rate, the par value of the bond should be lower than its price,
resulting in a premium bond. Critically discuss this phenomenon. (word
limit: 150 words) Get Finance homework help today