Question
You want to go to Europe 5 years from now, and you can save $3,100 per year, beginning one year from today. You plan to
You want to go to Europe 5 years from now, and you can save $3,100 per year, beginning one year from today. You plan to deposit the funds in a mutual fund that you think will return 15.87% per year. Under these conditions, how much would you have just after you make the 5th deposit, 5 years from now?
What is the present value of the following cash flow stream at a rate of 6.25%?
Your uncle has $338,437.45 and wants to retire. He expects to live for another 25 years, and he also expects to earn 7.5% on his invested funds. How much could he withdraw at the beginning of each of the next 25 years and end up with zero in the account?
What is the present value of the following cash flow stream at a rate of 8.0%?
Charter Bank pays a 4.94% nominal rate on deposits, with monthly compounding. What effective annual rate (EFF%) does the bank pay?
Suppose you inherited $318,348 and invested it at 8.25% per year. How much could you withdraw at the end of each of the next 20 years?
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