Question
Please please help!! With Finance. Much Appreciated! Need As Soon As Possible Important : (1) You have to show how you calculated your answers .
Please please help!! With Finance. Much Appreciated! Need As Soon As Possible
Important: (1) You have to show how you calculated your answers. You will get zero point if you write an answer only even if it is correct. Calculate numbers to two decimal places. (2) You have to write the financial calculator key sequence (for example. PV = , I/Y = , etc.) to find the answer. When you write, you have to follow the financial calculator sign convention, i.e., plus or minus should be differentiated.
Question 1
You are trying to save to buy a new $150,000 Ferrari (an Italian luxury sports car). You have $35,000 today that can be invested at your bank. The bank pays 2.1 percent annual interest on its account. How long will it be before you have enough to buy the car?
Question 2
Imprudential company has an unfunded pension liability of $730 million that must be paid in 25 years. That is, the company has to pay $730 million 25 years from now. Now = 2019, then 25 years from now = 2044. What is the present value of this liability? Use the discount rate of 5.5 percent.
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