Calculate it carefully:
1.
Pre-retirement EAR = 9%; and
Retirement EAR = 6%
All other values remain the same.
Question:

How many dollars does Bilbo need to save each month in Years 11 through 30?

2.
Project A Year 1 revenue = $115,000;
Project B Year 1 revenue = $165,000 and
Project C Year 1 revenue = $87,643
All other values remain the same.
Questions:
a. What is the NPV of Project A?
b. What is the PI of Project B?
c. If the projects are independent do you accept or reject Project C?
3.
The Techron I pre-tax operating costs = $33,500; and
The Techron II pre-tax operating costs = $42,000.
All other values remain the same.
Questions:
a. What is the EAC of Techron I?
b. What is the EAC of Techron II?
c. Which machine do you choose?
4.
The nominal EAR = 10%;
The inflation rate = 4%; and
All other values remain the same.
Question: What is the PV of Joe’s commitment?