Question
1) Your cousin, Sam is celebrating her 35th birthday today and wants to start saving for her anticipated retirement at age 65. She wants to
1) Your cousin, Sam is celebrating her 35th birthday today and wants to start saving for her anticipated retirement at age 65. She wants to be able to withdraw $10.000 from her saving account on each birthday for 10 years following her retirements; the first withdrawal will be on her 66th birthday. She intends to invest her money in a local bank at 9% per year, and wants to make equal annual payments into the account on each birthday. If Sam starts making these deposits on her 36th birthday and continues to make deposits until she is 65 (the last deposit will be on her 65th birthday), what amount must she deposit annually to be able to make the desired withdrawals on retirement?
2) Gina plans to start her university education four years from now. To pay her education,she has decided to save $1000 a quarter for the next four years in bank account paying 12% per annum interest, compounded quarterly. Assume that deposits are made at the start of each period. How much will she have (to the nearest dollar) at the end of the fourth year?
3) The concept of 'primary market' refers to the
a. Both original sale of securities by government and original sale of securities by companies
b. Securities bought and sold after the original sale
c. original sale of the securities by governments
d. Original sale of the securities by companies
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