Question

Write the answers in the space allotted. Partial credit will be given 1. Time Value of...

Write the answers in the space allotted. Partial credit will be given

1. Time Value of Money:

You are saving up for retirement and are able to save $9,000 per year.

a. Suppose you can earn 8.5% on your investment. How much will you have after 30 years? PV = FV = N = PMT = I =

b. How much would you have if you work for an additional 5 years? PV = FV = N = PMT =. I =

c. How much will you have to save per year to earn same amount in 30 years, instead of 35? PV = FV = N = PMT = I =

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Answer #1

Given,

Annual savings (A) = $9000

Solution :-

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