Brad and Sheryl are the same age. Brad determined that most of their investments make an average
Question:
Brad and Sheryl are the same age. Brad determined that most of their investments make an average of 6% per year. With this as the interest rate, the analysis of the four alternatives is possible. Sheryl and Brad plan to answer the following questions, but don't have time this week. Can you please help them? (Do the analysis for one person at a time, not the couple, and stop at the age of 85.)
1. How much in total (without the time value of money considered) will each plan A through D pay through age 85?
2. What is the future worth at 6% per year of each plan at age 85?
3. Plot the future worth values for all four plans on one spreadsheet graph
4. Economically, what is the best combination of plans for Brad and Sheryl. assuming they both live to be 85 years old?
5. Develop at least one additional question that you think Sheryl and Brad may have.