1)Today is George first day of work. He is planning to work for 35 years and the retire. His salary this year is going to be $60,000 (at the end of year 1). George estimate that his salary is going to grow by 4% annually. George wants to save 10% of his annual salary, and he thinks that in an average he could win a 6% of annual yield over his savings.

a)Find how much money George will have saved at year 35.

b)In accordance with the amount saved (the result of the problem a.), find how much money George could withdraw monthly in the year 36 to the year 70 (the first withdrawal his going to make it in the first month in the year 36). The interest rate of the year 36 to the year 70 is expected to be 7% annul (EAR).

2)Harry started to work today and wants to establish a saving plan for his future. His salary this year (at the end of year 1) will be $60,000 and it will grow by 4% annual. He is planning to work for 4 years (from year 1 to year 4) and save a 40% of his salary so he can pay his MBA degree in the years 5 and 6. Harry estimates that his MBA degree will cost him $50,000 at the beginning of year 5 and $50,000 at the beginning of year 6. If he is left with a surplus after paying his MBA degree, Harry plans to leave that leftover gaining interests.

After finishing up his MBA degree, Harry thinks that he can find a job that pays him$150,000 in the year 7 and that it can grow by a 6% annual. Harry plans to save 15% ofhis salary of the year 7 to the year 36 that is when he plans to retire.

The interest rate is 7.4% annual (effective)

Presume Harry receives his salary in a single payment at the end of each year.

a)Find how much Harry will be able to withdraw monthly from the year 37 to the year 70 (the first monthly withdrawal will be at the end of month one in the year 37.)

3)Use the following information about a treasury bond to answer the following questions:

a)Calculate the price an investor would have to pay to buy this bond.

b)Indicate in dollars how much the investor is going to receive semiannually.

c)Calculate the current yield.

4)In December of 2016, Kendall is going to have already saved $20,000 for her MBA degree. Indicate how much does Kendall needs to have saved (besides the $20,000 she will be having already) at the end of each month during the next 3 years (2017,2018, 2019) to be able to pay her MBA degree. The interest rate is 8% annual.