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You are trying to calculate how much money you should have at retirement. On your 65 th birthday you will retire and immediately make your
You are trying to calculate how much money you should have at retirement. On your 65 th birthday you will retire and immediately make your first withdrawal of $9,983.35. You plan to make 12 such withdrawals each year. You plan to continue withdrawing at that level and frequency until you are 90 years old. (Assume beginning of period withdrawals with the first withdrawal on your retirement date and no withdrawal on your final birthday.) During retirement your savings will earn only 3.5\% per annum. How much do you have to have saved at retirement to fund these planned withdrawals? Calculate to two decimal places. (Calculate to two decimal places.) Wally, president of Wally's Burgers, is considering franchising. He has a potential franchise agreement that would see him receive 13 endof-year payments starting one year from now. The first two payments would be $30,000 and $25,000 in one and two years respectively, and then $21,000 per year after that for 11 years. If Wally requires a return of 6%, what is the present value of this stream of cash flows
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