-4- QUESTION 2: Mr. MoneyMiser is planning to retire in 30 years. His current net worth is -$100,000 (it is a loan at an interest rate of 6% per annum) His goal is to have $2,000,000 at retirement. a....

Extracted text: -4- QUESTION 2: Mr. MoneyMiser is planning to retire in 30 years. His current net worth is -$100,000 (it is a loan at an interest rate of 6% per annum) His goal is to have $2,000,000 at retirement. a. Determine the constant amount he should be saving each year for 30 years, so that his loan is paid off and he will have $2,000,000 for his retirement. He will earn 6% per year rate of return on his savings. b. MoneyMiser will save the same annual amount as calculated in part a above, but suppose he can earn 8% per annum on his savings. Loan and all the accumulated interest at the rate of 6% will be paid off 5 years from today. After paying off the loan how much MoneyMiser should be saving each year to have $2,000,000 at his retirement. Any difference between his savings in part a above, and required savings per year in part b to achieve his goal of $2,000, 000 at retirement will be invested in a risky portfolio expected to earn 10% per year. What will be the value of the risky portfolio when he retires.