Question: Please answer correctly to give thumbs up. Thank you B.) Suppose you retire at age 70, with a life expectancy of 20 more years, and
Please answer correctly to give thumbs up. Thank you
B.) Suppose you retire at age 70, with a life expectancy of 20 more years, and you expect to spend $55,000 a year during your retirement. How much money do you need to save by age 70 to support this consumption plan? Assume an interest rate of 7 percent. Show me: BY Tabular Method
2) $ 675 bond matures in 16.5years. Coupon rate 13.39%. Payment made biweekly. R = 24.89%. After 5-years coupon rate becomes 12% and payment made weekly. R = 3%. What is your RATE OF RETURN over the years (ROR)?
3) Bond matures in 15 years. Coupon rate 18%. Payment made in weekly. R = 12%. After 10-years coupon rate becomes 6% and payment made semi-annually. If R = 8%. What is the rate of returns over the year (ROR)?
4) Let D3 = $4 Growth Rate g = 10% next 3 years starting from Today. After that growth rate g = 15% rate next 1 year After that growth rate g = 17% rate next 1 year After that growth rate g = -5% forever If R = 15 % . FIND STOCK PRICE TODAY (Po)
5) Let D0 = $7 Growth Rate g = 10% next 1 years starting from Today. After that growth rate g = 8% rate next 2 year After that growth rate g = 12% rate next 1 year After that growth rate g = 15% forever If R = 25 % . FIND STOCK PRICE TODAY (Po)
6.) Retirement Planning OR PENSION PLANNING ) Now you are 22 Years old, want to retire at the age of 65. You would like to have $70,000 semiannual payment until you are 103 years old. You inherited ( Gift) $ 60,000 at the age of 38 and $10,000 at the age of 48. Please calculate how much you must save biweekly to receive $ 70,000 semiannually by the two following ways: USE (R = 8.5%) A) Biweekly Payment without gift. B) Biweekly Payment with gift.
7) House cost = $ 450,000. 20% down payment. 30 years mortgage . Bank interest rate is 26% (r=26%). Tell me how much your monthly payment will be. After 20 years the market interest rate becomes 15% (r=15%). Because of the lower interest rate you would like to refinance your house with a lower interest rate and would like to pay back money to the bank bi-weekly. Tell me how much your bi-weekly payment will be.
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