Please help Mary Mills has retired after 35 years with the Electric Company her total pension funds
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- Mary Mills has retired after 35 years with the Electric Company her total pension funds have an accumulated value of $300,000, and her life expectancy is 18 more years. Her pension fund manager assumes that she can earn an 8 percent return on her assets. What will her yearly annuity be for the next 18 years?
a) If investors are to earn a 4 percent real interest rate, what nominal interest rate must they earn if the inflation rate is:
- zero
- 4 percent
- 6 percent
b) Perpetuities. A property will provide $10,000 a year forever. If its value is $125,000, what must be the discount rate
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