You are 20. You save $500 every month, at the end of the month, from the age of 20 till the age of 50. The annual rate of return is 6%. How much will you have saved at age 50?

2.The current rate of a 30-year treasury bond is 4.85%. It pays a 4% coupon on a $100 face value, at the end of every six months. What is the price of this bond if it is issued today?(2 Points)

3.You buy an apartment at $500,000 that you expect to rent for $2500 a month and sell at $600,000 in 5 years. If the property is fairly valued at purchase now, what is the rate of return that justifies this price?

4.You buy an annuity that pays you $1,000 from the end of this month, every month, and for 10 years. Assuming a rate of return of 5%, what is the price of this annuity?(2 Points)

 

8.You would like to save one million dollars by the age of 65. You follow the data on returns of Jeremy Siegel. Your portfolio is expected to return 7% a year. How much should you save at the end of each month if you are 25 today?(2 Points)

9.You buy an apartment $400,000, and expect to earn $2,500 in rental income at the end of every month. How much should you expect to sell the apartment in year 5 if you would like to realize a 10% return?(2 Points)