You are considering your retirement options. You want to retire in 30 years from today. You anticipate that you will need to make 20 withdrawals during your retirement life. You want to maintain a luxury lifestyle during retirement, so each withdrawal is set to be $90,000. Use 8% interest rate for your calculation.

Suppose you have the following complex plan to meet your retirement goal. First, your employer will contribute until your retirement. Second, you also expect a distribution of $25,000 from a family trust 20 years from today. What amount must you deposit annually to meet the retirement goal?

Question 11 options:

	7324
	There is not enough information to calculate the amount that you have to deposit in the scenario described.
	6824
	5824
	7800

Question 12 (1 point)

$80,000 is due 20 years from today. The borrower wants to make quarterly payments into a fund that will earn compound interest at an annual rate of 5%, compounding monthly. What will the quarterly payments have to be?

Question 12 options:

	$586.33
	$366.46
	$439.75

Question 13 (0.5 points)

Which of the following is/are true regarding Present/Future Value of a single cashflow?

I. For a given interest rate the longer the time period, the higher the future value

II. For a given time period the higher the interest rate, the higher the present value

III. For a given time period the higher the interest rate, the higher the future value

Question 13 options:

	All true
	I and III
	II only

Question 14 (1 point)

Today you won a small sweepstakes prize. Your winnings will be split into 12 monthly payments of $2,000 starting from today. If the annual rate of return you can get at your bank is 3% (i.e. monthly return is 3%/12). what is the present value of your winnings?

Question 14 options:

	$29,507.03
	$23,673.54
	$38,968.98
	$20,505.25
	$23,614.51

Question 15 (1 point)

The present value (at t=0) of the following cash flow stream is $6000 when discounted at 11% annually. That stream consists of payments made at the end of each of four periods. One of the payments, the second one, is missing. The others are $1,000 at t=1, $2,000 at t=3, and $2,000 at t=4. What is the value of the missing cash flow?

Question 15 options:

	3026.30
	2857.55
	6000
	3587.45