You plan to start your business and expect to earn the following profits each year and deposit the profits in a mutual fund that earns 7% compounded annually per year. How much money will you have at the end of the year 7. If you decided to retire at the end of the year 7 and spend your savings over 20 years, how much can you withdraw each year if you can earn 8% compounded annually. After working for a long time (25 years) with your company, you have decided to accept the company's termination offer of $30, 000 per year for 25 years or accept a lump sum of $320,250 one year from today. If you can earn 6% per year on other investments, will your accept this lump sum or take the annuity payments? By how much are you better off with the plan you selected? Show the calculations used to accept or reject any one of the two options. What interest rate the company is offering you in the annuity? Zang international Chinese chemical company has a 15% annual coupon interest rate on a $1, 000 par value bond with 20 years left to maturity. Bonds of some maturity now sell to yield 11% return. How much would you be willing to pay for one of the these bonds today? why? If the bond is selling for $ 1, 141 what is the yield to maturity