Question 1 Upon retirement your mother received E 500, 000 lump sum. She expect to live for the next 15 years and will only depend on the retirement fund for income. Her bank offers 12% interest per annum. Advise your mother on how much she should withdraw from her bank at the end of each year for the duration of the desired life span? [10 marks]​

Brian has just finished college. he wants to set up a small business to make and sell fireworks. he registers his company and acquires a license from the government. he finds that most of his competitors are selling fireworks at an extremely low price. he would like to make more money, so he decides to innovate and develop better fireworks. he sells his fireworks at a higher price, and they are a huge hit with the customers. after a few years, he earns enough profit to set up a bigger fireworks factory that complies with the government’s health and safety regulations. he even starts exporting fireworks overseas. which type of economy does this scenario describe?