Do all on excel

1. A self-employed individual deposits $4000 each year at the end of the year into a retirement account that earns 8% annually. a. If these contributions begin when she is 40 years old, what will the account balance be when this person is 65 years old? b. If this person stops making the annual contributions at 65 years old, but defers retirement until 72 years old, how much money will be in the account? c. If she defers retirement until 72 AND keeps making the annual contributions, how much will be in the account? d. Assume this person will live until the age of 90. How much could she withdraw annually under scenarios a, b, and c?

2. Upon graduation, you take a job that pays $70,000 annually. If inflation is 3% annually, how much must your salary be to maintain your purchasing power (a) 20 years after graduation, and (b) 40 years after graduation? What if inflation is 6% annually over those time periods?

3. You put $5000 in an account that earns 10%. How much will be in the account after 5 years if the interest is compounded annually, semiannually, quarterly, monthly, daily, or continuously?

4. You can purchase a $500,000 life insurance policy today for a single payment of $160,000. a. If you want to earn 10% on invested funds, how soon must you die for the policy to be superior to simply investing $160,000 at 10%? b. If you die in 9 years, what is the return on your investment in life insurance?

5. You purchase a $320,000 home with a 20% down payment and a mortgage for the balance. How much will your MONTHLY payment be if: a. You get a 15-year mortgage at 6.5%? b. You get a 20-year mortgage at 7.0%? c. You get a 30-year mortgage at 7.8%?

6. After graduation, you enter the military and become an officer. 20 years later you can retire and begin a second career, at which time you intend to start your own small business. You estimate that you will need $200,000 saved with which to start the business. When you graduate, you are given $25,000 in graduation gifts that you will invest at 6% annually. a. How much additional money must you set aside at the end of each year for the 20 years that you are a military officer to meet your goal of $200,000 when you retire and start your business? b. How would this change if you invested the funds at the beginning of each year?

7. Assisted living care facilities are expensive, and when your mother goes into assisted living, she wants a single room with her own bathroom. You anticipate that your mother will need to go into assisted living five years from now, and that her life expectancy at that point will be four years. The cost of assisted living will be $8,500 per month. Your mother currently has $300,000 in assets that are earning 7% annually. In addition to this, how much must she invest each month between now and the time she goes into assisted living to have the total amount needed to pay for her stay in assisted living?