Question 4

You would like to have $72,136 each year of your retirement. Your retirement will last for 40 years and start 22 years from today. How much would you have to invest, each year, starting next year, for 12 years to exactly pay for the down payment if your investments earn 4.42% APR compounded annually?

Question 5

A Asset Valuation = Price

B Wealth Accumulation

C Funding Lump sum funds lump sum

D Funding Lump sum funds ordinary level annuity

E Funding Lump sum funds delayed level annuity

F Funding Ordinary level annuity funds lump sum

G Funding Ordinary level annuity funds delayed level annuity

H Choosing Among Alternatives Classify the problem as one of the above types.

Choose Only One You need $15,000 in 12 months to pay for your property taxes. How much must you invest in months 1 to 12 to exactly pay for your property tax if your investments earn 3% APR, compounded monthly?