Brian takes out a retirement annuity that will supplement his pension when he retires in thirty years' time. He estimates that he will need R2,5 million in this retirement fund at that stage. The interest rate he earns is 9% per annum compounded monthly.
(1)
Calculate his monthly payment into this fund if he starts paying immediately and makes his final payment in 30 years' time.
(2)
The retirement fund does not pay out the R2,5 million when Brian retires.
Instead he will be paid monthly amounts, for a period of twenty years, starting one month after his retirement. If the interest earned over this period is calculated at 7% per annum compounded monthly, determine the monthly payments he will receive.