Need help with questions 2-5

t term I Prep Multiple Choice Identify the choice that best completes the statement or answers the question 1. You are planing your retirement and you come to the conchusion that you need to have saved $1,250,000 im 30 years. You can invest into an retirement account that guarantees you a 5% annual return. How much do you have to put into your account at the end of each year to reach your retirement goal? a. $81,314.29 b. $18,814.30 c. $23,346.59 d. $12,382.37 2. When you retire you expect to live for another 30 years. During those 30 years you want to be able to withdraw $4,000 at the BEGINNING of every month for living expenses. How much money do you have to have in your retirement account to make this happen. Assume that you can earn 8% on your investments. a. $545,133.98 b. $1,440,000.00 c. $548,768.20 d. $673,625.34 3. What is the present value of $25 to be received at the end of each year for the next 6 years if the discount rate is 12%? a. $125.00 b. $113.06 c. $102.79 d. none of the above 4. You would like to have $1,000 one year (365 days) from now and you find that the bank is paying 7% compounded daily. How much will you have to deposit with the bank today to be able to have the $1,000 a. $934.58 b. $933.51 c.$932.40 d. none of the above What is the present value of the following cash flow stream at a rate of 8.0%? Years: CEs: $750 $2,450 $3, 175 34, 400 a. $7.917 b. $8,333 e. $8,772 d.$9,233 e $9.695