7. Sam wants to save for his retirement. Starting one year from today, he plans to...

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7. Sam wants to save for his retirement. Starting one year from today, he plans to deposit A% of his annual salary each year into a retirement account. His salary currently is $B and will increase by C% per year throughout his career. The stated annual interest rate is D% with annual compounding. How much money will Sam have for his retirement which begins in E years? Give your answer correct to the nearest whole number. (Hint: The first payment in his retirement account is one year from today after his first salary increase) A B $ 5.00% 90,000.00 CDE 2.00% 6.00% 40 ធ 8. Mr. and Mrs. Nash plan to finance their daughter Gabrielle's college education. Gabrielle just turned 10, and will be going to college 8 years from now. She will graduate in 4 years. The current annual cost of college is $ A and they expect this cost to rise by 8% per year going forward. Keep in mind College tuition is paid at the beginning of each school year. So far Mr. and Mrs. Nash have currently $C in their college saving account. They plan to add an additional $D in each of the next 4 years then they plan to make 3 equal annual contributions in the next 3 years. The annual interest rate over the next few decades will be E%. a) What is the Present value of Gabrielle's cost of college education. b) Calculate the additional annual payments made to cover Gabrielle's anticipated tuition costs. Give your answer correct to nearest whole number. A $ 20,000.00 B 2.50% $ C 9,000.00 D E $5,000 8.00% R 9. Jill won the first prize in a national badminton tournament whereby she will receive $A each year for B years with the first payment being made today. The opportunity cost of capital is C%. a) Calculate the present value of her prize. b) Calculate the value of her prize at the start of year 5. A $ 27,000.00 BC 5 5.00% 7. Sam wants to save for his retirement. Starting one year from today, he plans to deposit A% of his annual salary each year into a retirement account. His salary currently is $B and will increase by C% per year throughout his career. The stated annual interest rate is D% with annual compounding. How much money will Sam have for his retirement which begins in E years? Give your answer correct to the nearest whole number. (Hint: The first payment in his retirement account is one year from today after his first salary increase) A B $ 5.00% 90,000.00 CDE 2.00% 6.00% 40 ធ 8. Mr. and Mrs. Nash plan to finance their daughter Gabrielle's college education. Gabrielle just turned 10, and will be going to college 8 years from now. She will graduate in 4 years. The current annual cost of college is $ A and they expect this cost to rise by 8% per year going forward. Keep in mind College tuition is paid at the beginning of each school year. So far Mr. and Mrs. Nash have currently $C in their college saving account. They plan to add an additional $D in each of the next 4 years then they plan to make 3 equal annual contributions in the next 3 years. The annual interest rate over the next few decades will be E%. a) What is the Present value of Gabrielle's cost of college education. b) Calculate the additional annual payments made to cover Gabrielle's anticipated tuition costs. Give your answer correct to nearest whole number. A $ 20,000.00 B 2.50% $ C 9,000.00 D E $5,000 8.00% R 9. Jill won the first prize in a national badminton tournament whereby she will receive $A each year for B years with the first payment being made today. The opportunity cost of capital is C%. a) Calculate the present value of her prize. b) Calculate the value of her prize at the start of year 5. A $ 27,000.00 BC 5 5.00%

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a To find the present value of Gabrielles college edu... View the full answer