Question: Please show work! Problem 6: How much money you must invest today to be able to withdraw $1000 per year forever starting 5 years from
Please show work!
Problem 6: How much money you must invest today to be able to withdraw $1000 per year forever starting 5 years from now (i.e., your first withdrawal will be at t=5) if annual interest rate is 16%? Round your answer to the nearest cent. Problem 7: Find the PV of a perpetuity that pays $1000 each third year starting at t=7 (i.e., at t=7, 10, 13, ...). The annual interest rate is 8%. Round your answer to the nearest cent. Problem 8: You plan to retire in 45 years and you would like to save $1,000,000 by the time you retire. To do so, you plan to set aside a fixed amount of money $C for 45 years starting next year. If annual interest rate is 4%, find C. Round your answer to the nearest cent. Problem 9: Find the PV of an annuity that consists of 20 annual payments of $1,000 per year if the first payment is made immediately (i.e., at t=0) and the interest rate is 7%. Round your answer to the nearest cent. Problem 10: You plan to retire in 45 years and you would like to save for your retirement by making annual $5,000 deposits into your saving account that pays 6% interest rate. You plan to make the first deposit exactly 1 year from now. Unfortunately, because of unexpected financial problems, you were not able to make your 30th deposit (but you made all the remaining 44 deposits). How much money will you have in your account 40 years from now (right after your last deposit?) Round your answer to the nearest cent
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