Problem: Jane is currently working with Joburg National Bank. She earns $35,000 net salary every year. She saves up 5% of her net salary annually in a pension scheme.
Required:
a. How long will it take for her total pension savings to be $350,000 if the interest rate is 10% per year?
b. If she retires after working for 50 years, how long will her pension money run out if she withdraws a constant amount of $25,000 every year? Assume that the interest rate changes to 5% per year after the 50 years of employment.