Question
2. You find out that you have an inheritance that will pay you $20,000 after 6 years. Using an annually compounded discount rate of 8%,
2. You find out that you have an inheritance that will pay you $20,000 after 6 years. Using an annually compounded discount rate of 8%, what is this worth today?
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4. Suppose that today is your 21st birthday. You want to get things started off right so you find a savings plan for retirement. This plan is expected to pay 8%, and you are required to deposit money each month. How much will you need to deposit each month (starting next month) so that you will be a millionaire by your 71st birthday? (for the timeline it may be good to write instead of each payment)
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Public Finance Administration
Authors: B. J. Reed, John W. Swain
2nd Edition
0803974051, 978-0803974050
