Ms. Khan is preparing for her daughter's future wedding expenses. Her daughter is currently 15 years old, and Ms. Khan estimates that she will need $80,000 for the wedding when her daughter turns 23.   (a) How much will she have to set aside today if the annual interest rate is 5% and the bank compounds it quarterly?   (b) How much will she have to set aside today at the same rate if the bank compounds it daily?   (c) Explain the difference in your answers above.

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Retirement Income

Retirement income is the income received by the retiring person after retirement. Income can either be paid every month or paid annually. The retiree would get a guaranteed income until their death. Retirement income payment differs from person to person based on their investment type and payment method. Some are paid on a lump-sum basis and some are paid in a regular series with fixed payment or variable cash flow. Retirement income can be created from retirement savings, investment, salary, bonus, and wages from employment. Every working individual should plan their retirement income according to their income goals for the future. The plan should be made by identifying suitable income sources, estimating future expenses, applying a savings plan, and managing risk and assets. The most common age for retirement is between 60-65 years.