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Need all questions answered for homework please show work. It's due in a hour Today!? 1. You are 25 years old and decide to start

image text in transcribed Need all questions answered for homework please show work. It's due in a hour Today!?
1. You are 25 years old and decide to start saving for your retirement. You plan to save $5,000 at the end of each year (so the first deposit will be one year from now), and you will make the last deposit when you are a 55. Suppose you earn 8% per year on your retirement savings. 65 a. How much will you have saved for retirement? 2 S b. How much will you have saved if you wait until age 35 to start saving (again, with your first deposit at the end of the year). (5 points) 2. Ebertek is a privately held corporation that is currently being offered for sale. Big Corp. is considering buying the firm. Ebertek's earnings after tax have averaged $2.5 million for the last five years without much variation. Interest rates are about 10%. What is a realistic starting point for price negotiations? (5 points) 3. A bank is offering 12% compounded quarterly. If you put $10 in an account a. How much will you have at the end of one year? b. How much is the effective annual rate? (5 points) 4. Barbara is considering investing in a stock and is aware that the return on that investment is particularly sensitive to how the economy is performing. Her analysis suggests that four states of the economy can affect the return on the investment. Using the table of returns and probabilities below, find the

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