Please answer these questions for me. see attached document.

1. Linda needs to have $50,000 in eight year, how much would she have to invest today, if she earns 10 percent annually on her money? How much would she have to put away annually to have $50,000 in eight years? 2. Which of these two bonds first the highest current yield? Which one has the highest yield to maturity? a. A 7 percent, 20-year bond quoted 101.000 b. A 10 percent, 30-year bond quoted at 105.00 3. Suppose you want to retire in exactly 30 years. At that time, you wish to have $500,000 in your retirement account. If the applicable rate is 5.78%, compounded monthly, how much would you need to put into the account at the end of each month to meet your goal? 4. Jacqueline is 25-year old now. If she earns 6% on savings of $3,000 a year, how much will her retirement fund be by age 65? 5. Please refer to worksheet 14.1: Estimating future retirement Needs. Assume Jared and Trish Roberts needs 26,792 each year for the first 20 years after their retirement, and 20,000 each year for the next 5 years, re-compute the amounts for Line N and Line Q. Other information has no change. PROJECTING RETIREMENT INCOME AND INVESTMENT NEEDS Name(s) Date I. Estimated Household Expenditures in Retirement: A. Approximate number of years to retirement B. Current level of annual household expenditures, excluding savings $ C. Estimated household expenses in retirement as a percent of current expenses D. Estimated annual household expenditures in retirement (B C) % $ - II. Estimated Income in Retirement: E. Social security, annual income $ F. Company/employer pension plans, annual amounts $ G. Other sources, annual amounts $ H. Total annual income (E + F + G) $ - I. Additional required income, or annual shortfall (D - H) $ - III. Inflation Factor: J. Expected average annual rate of inflation over the period to retirement K. Inflation factor (in Appendix A): retirement (A) and an expected average annual rate of inflation (J) of Based on % 0 years to 0% L. Size of inflation-adjusted annual shortfall (I K) 1.00 $ - IV. Funding the Shortfall: M. Anticipated return on assets held after retirement N. Amount of retirement funds requiredsize of nest egg (L M) % $ O. Expected rate of return on investments prior to retirement % P. Compound interest factor (in Appendix B): Based on 0 years to retirement (A) and an expected rate of return on investments of 0% Q. Annual savings required to fund retirement nest egg (N P) Note: Parts I and II are prepared in terms of current (today's) dollars. - 0.0 $ - 1 A = P(1+i)^n 50000=P(1.1)^8 ie P = 23325.37 Thus Linda needs to invest $ 23325.37 annually for 8 years. 2 quoted at Coupon Current yield 20 year 30 year bond bond 101 105 7 10 6.93% 9.52% So 30 year bond has highest current yield YTM = C + (F-P)/((F+P)/2) Ytm 6.92% 9.51% So here also 30 year bond has highest YTM 3 Total paym 360 Amount 500000 interest rat 0.48% Payment p $2,927.53 At the end of each month, $ 2927.53 is to be invested to meet the goal. 4 A = P(1+i)^n A = 3000(1+0.06)^65 A = 132434.9 By end of 65 years, she will have in her account $ 132434.9 1 Amount 50000 time 8 A.F @ 10%, 8 years 5.3349 PMT 9372.25 Thus Linda needs to invest $ 9372.25 annually for 8 years. 2 quoted at Coupon Current yield 20 year 30 year bond bond 101 105 7 10 6.93% 9.52% So 30 year bond has highest current yield YTM = C + (F-P)/((F+P)/2) Ytm 6.92% 9.51% So here also 30 year bond has highest YTM 3 Total paymen 360 Amount 500000 interest rate 0.48% Payment per $2,927.53 At the end of each month, $ 2927.53 is to be invested to meet the goal. 4 A = P(1+i)^n A = 3000(1+0.06)^65 A = 132434.9 By end of 65 years, she will have in her account $ 132434.9