(50%). Suppose Lily is a 20-year-old university student. According to what you have learned in this...
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(50%). Suppose Lily is a 20-year-old university student. According to what you have learned in this subject, design a life-cycle model for her. Note: 1. In your work, you should first, present clearly your assumptions and any notations you adopt for your work. 2. You should compute how much Lily needs to save for her retirement by assuming that she needs to maintain the same level of consumption spending before and after retirement. Question 2 (50%). Solve an incentive problem related to finance you or your relatives encountered. You should 1. State clearly what the problem is, and why this problem is related to finance; 2. Solve this problem using the knowledge you have learned in this subject. Present the details. (50%). Suppose Lily is a 20-year-old university student. According to what you have learned in this subject, design a life-cycle model for her. Note: 1. In your work, you should first, present clearly your assumptions and any notations you adopt for your work. 2. You should compute how much Lily needs to save for her retirement by assuming that she needs to maintain the same level of consumption spending before and after retirement. Question 2 (50%). Solve an incentive problem related to finance you or your relatives encountered. You should 1. State clearly what the problem is, and why this problem is related to finance; 2. Solve this problem using the knowledge you have learned in this subject. Present the details.
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Question 1 Assumptions Lily is 20 years old and plans to retire at age 65 Lily will live until age 90 Lilys current annual consumption spending is 30000 Lilys consumption spending will increase by 2 p... View the full answer
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