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5. You are going to retire after exactly five years, and you plan to take a world cruise after retirement for which you will require
5. You are going to retire after exactly five years, and you plan to take a world cruise after retirement for which you will require $28,000. What is the lowest amount that you must set aside today at an interest rate of 6 percent so that you can take the cruise? (6 points) 6. Suppose that your required rate of return is 12 percent. You are offered an investment into an asset that will yield $35,000 at the end of the seventh year. What is the maximum price that you would be willing to pay now for this asset? (6 points)
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