Question
1) Michael used an online financial calculator and it tells him it will be wise to have saved $500,000 by the day Michael retire 50
1)
Michael used an online financial calculator and it tells him it will be wise to have saved $500,000 by the day Michael retire 50 years from now. Michael believes he can earn 7% a year on average, how much will Michael need to saveeach yearto hit this goal?
2)
City Savings Bank will pay April $75 a year for life if she deposit $2,000 today.If her heirs continue collecting the $75forever, what rate is the bank paying?
Rate on Perpetuity ?
3)
Bank pays $20 every 3 months as a perpetuity.The quoted annual rate on this investment option is 4%.
a) What is the present value of this perpetuity?
b) Quarterly rate used in the bank's calculation?
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International Financial Reporting Standards An Introduction
Authors: Belverd Needles, Marian Powers
2nd edition
053847680X, 978-1111793234, 1111793239, 978-0538476805
