Question: show calculator inputs. do all please. 5. Your father has $750,000 and wants to retire. He expects to live for another 20 years, and to
5. Your father has $750,000 and wants to retire. He expects to live for another 20 years, and to be able to earn 8% on his invested funds. How much could he withdraw at the end of each of the next 20 years and end up with zero in the account? 6. Your father has $300,000 invested at 8%, and he now wants to retire. He wants to withdraw S50,000 at the end of each year, beginning today. How many years will it take to exhaust his funds, i.e., run the account down to zero? 7. You just won the state lottery. The state gives you the choice of $1,000,000 today or a 20-year annuity of $75,000, with the first payment coming one year from today. What rate of return is built into the annuity? 8. At a rate of 890, what is the future value of the following cash flow stream? S0 at Time 0; $100 at the end of Year 1 S300 at the end of Year 2; S0 at the end of Year 3; and S500 at the end of Year 4? 9. Suppose you borrowed $25,000 at a rate of 8% and must repay it in 4 equal installments at the end of each of the next 4 years. How large would your payments be? 10. You want to go to grad school 3 years from now, and you can save $5,000 per year, beginning one year from today. You plan to deposit the funds in a mutual fund which you expect to return 990 per year. Under these conditions, how much will you have just after you make the 3rd deposit, 3 years from now
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