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PLEASE ANSWER THESE FOR ME!!!!! 1.Your friend owns a beach house in San Diego. Its market value is $5,000,000. Your friend thinks that the local

PLEASE ANSWER THESE FOR ME!!!!!

1.Your friend owns a beach house in San Diego. Its market value is $5,000,000. Your friend thinks that the local housing market has peaked and that house prices will increase only at 3% over the next 5 years. He thinks that he can invest his money at a rate of return of 7%. What would you advise him to do? Why? Show calculations. You have $5,000,000 and you think that you can earn a return of only 2% on your investments. What will you do and why? Show calculations. What happens if housing prices in San Diego increase at 10%? Show calculations. What happens if housing prices in San Diego increase at 1%? Show calculations.

2.You currently earn $500,000 pre tax. Your current tax rate is 35%. You expect to retire in 25 years and wish to maintain your lifestyle post retirement. You have the boon of immortality and therefore expect to live forever. You think you can earn a return on investment of 10% till you retire. After you retire you will be able earn a return on investment of only 5%. Inflation is expected to be 2% till you retire. It will be 3% after you retire. You will have to pay tax at 20% after you retire. Calculate how much money you need to aside every year till you retire in order to meet your retirement lifestyle goals. How much do you need to contribute initially if you plan to increase your contributions by 3% every year?

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