Question
7. You plan to save $5,000 this year and increase the annual savings amount by 6% each year. If you can earn 9.5% on your
7. You plan to save $5,000 this year and increase the annual savings amount by 6% each year. If you can earn 9.5% on your money, how much will you have in 15 years?
8. A real estate company is considering buying a property that will pay them $42,000 a year beginning in 4 years and lasting 18 years after that. If their required return is 8.2%, what is the most they should pay for this property today?
9. When you retire, you want to receive annual payments of $50,000 the first year of retirement and then increase that amount by 3.5% each year over your expected 30 years of retirement. If you can earn 7.5% on your money, how much do you need to have when you retire?
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