1.

An insurance broker calls you and despite your finance professor's warnings, you listen to their offer. The offered insurance product requires you to make payments every four month of $181 and do so for the next 33 years (1^st payment is 4 months from today). The insurance product offers to meet your required return of 8 % per year (i.e. effective), and pay interest every four month. What amount of money should the insurance product promise you at the end of 33 years? (Please make sure to use at least up to 6 decimal points for the I/Y input).

2. Your high school classmate is offering you an investment opportunity which requires you to make monthly payments of $584 each (1^st payment is 1 month from today), over the next 20 years. It offers a nominal annual return of 11 % with semi-annual compounding. What is the future value of this investment at the end of its life (including all your payments and all interest)? (Round your answer to three decimal places. For example 1.23450 or 1.23463 will be rounded to 1.235 while 1.23448 will be rounded to 1.234).

3. You hope to retire in 28 years. When you do, you would like to have the purchasing power of $167,709 today, during each year of retirement. Your cash is needed at the beginning of each year of retirement. Inflation is expected to be 2 % per year from now until the end of your retirement. Your retirement will last 21 years. You expect your 401K to earn 8 % per year during your retirement years. How much money do you need at the beginning of your retirement years, to "just meet" your retirement needs? (Round your answer to three decimal places. For example 1.23450 or 1.23463 will be rounded to 1.235 while 1.23448 will be rounded to 1.234).