Suppose Chris plans to save for retirement over the next 18 years by making equal incremental savings payment at the end of each semiannual period beginning six months from today. When he retires, in 18 years, he will begin withdrawing $4,273 at the end of each semiannual period and anticipates that retirement will last for 32. How much will Chris need to save each semiannual period from now until year 18 to fund his retirement if the interest rate is 8.25%.

(Hint, this is a two step problem, 1) how much will he need to have saved to fund his retirement, 2) how much will he need to save to get there)

Answer Format: INCLUDE ONLY NUMBERS AND DECIMALS IN YOUR ANSWER. Do not include "$" "," or any other formatting. Carry interim computations to at least 4 decimals.

Enter numerical answers as a positive or negative number rounded to 2 decimal places (###.##)

2)

Western regional bank is selling a perpetuity that pays equal payments of $X every semiannual period with the first payment in one semiannual period from today. They will accept payment for the perpetuity in 3 incremental payments: 2,082 in 2 years, 5,692 in 6 years and 4,113 in 14 years. How much will the perpetuity pay each semiannual period (what is X)? Assume the interest rate is 13.61% compounded semiannually.

Answer Format: INCLUDE ONLY NUMBERS AND DECIMALS IN YOUR ANSWER. Do not include "$" "," or any other formatting. Carry interim computations to at least 4 decimals.

Enter numerical answers as a positive or negative number rounded to 2 decimal places (###.##)

3)

Suppose you purchase a house for $672,245 using a 30-year fixed-rate mortgage. You agree to make a down payment of $31,807 today. In addition, you agree to pay $82,593 in 4 years and $26,600 in 7. Find the size of your monthly payment you should ask for from your bank if interest rates are currently 7.73% and payments are made at the end of the month with the fist payment due at the end of this month.

Answer Format: INCLUDE ONLY NUMBERS AND DECIMALS IN YOUR ANSWER. Do not include "$" "," or any other formatting. Carry interim computations to at least 4 decimals.

Enter numerical answers as a positive number rounded to 2 decimal places (###.##)

4)

You plan to start grad school in 5 years and will graduate 4 years after you start. Most of the programs that you are looking at have a tuition payment plan that requires incremental payments of $44,721 per month, due at the beginning of each month. If you start saving, in equal incremental amounts, at the beginning of this month (today) and make your last savings payment one month before you start school, how much must you deposit at the beginning of each month to cover the tuition payments? Assume an interest rate of 9.21% per year.

Answer Format: INCLUDE ONLY NUMBERS AND DECIMALS IN YOUR ANSWER. Do not include "$" "," or any other formatting. Carry interim computations to at least 4 decimals.

Enter numerical answers as a positive number rounded to 2 decimal places (###.##)