Burt is 53 years old and has $2.1m saved in stocks and bonds. He wants to retire atage 65 with $5.0m. Assuming Burt adds nothing further to his savings, what rate of returndoes Burt need to achieve his goal?

Ernie warns Burt to be conservative in his assumptions to make sure he can achievehis retirement goal. Thus, Burt determines that the maximum annual rate of return heshould assume is 6.0% in his forecast. Since he knows he will be short of his goal of $5.0m,he is willing to contribute additional cash to his retirement accounts every year. Assuminga 6.0% return and the numbers outlined in problem #2 above, how much does Burt need tocontribute each year to reach his goal?

Jonathan and Nancy are hoping to buy a house. They plan to finance their purchaseover 30 years at the current interest rate of 6%. The amount they will be able to finance is$185,000. They will finance their purchase through a conventional mortgage, whichcompounds interest monthly.a. (10%) How much will their mortgage payment be excluding taxes and insurance?b. (1%) What is their nominal rate of interest?c. (1%) What is their periodic rate of interest?d. (3%) What is their effective annual rate of interest?

How long will it take Steve to grow $10,000 into $100,000 at 12.0% interestcompounded quarterly?

How much would Steves $10,000 grow to if his investment was compoundedat an 12.0% rate of return continuously for the same period of time found in answerpart a. above?

William Astor would like to buy a new car. He can afford payments of $325 a month.The bank makes three-year car loans at 8% compounded monthly. How much can Williamborrow toward a new car?

Professor Jones expects to retire in 15 years and has suddenly realized that shehasnt saved anything toward that goal. After giving the matter some thought, she hasdecided that she would like to retire with enough money in savings to withdraw $105,000per year for 30 years after she retires. Assume a 9% return on investment before and afterretirement and that all payments into and withdrawals from savings are at year end.a. How much does Jones have to save in each year for the next 15 years to reach hergoal?b. How much would Jones have to save each year if she had started when retirementwas 25 years away?