Question

An investment is expected to earn you $2,000 each quarter for the next 12 years. If...

An investment is expected to earn you $2,000 each quarter for the next 12 years. If the appropriate discount rate is 8.9%, how much is this investment worth today Round to the nearest cent.


You’d like to buy a small ranch when you retire in 32 years. You estimate that in 32 years you’ll need $13 million to do so. If your savings can earn 0.9% per month, how much will you need to save each month (for 32 years), starting next month, in order to reach your goal? Round to the nearest cent.

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Answer #1
ans 1 We have to use finanical calculator to solve this
put in calculator
FV 0
PMT -2000
I 8.9%/4 0.02225
N 12*4 48
Compute PV $58,629.85
ans = $58,629.85
ans 2 We have to use finanical calculator to solve this
put in calculator
FV 13000000
FV 0
I 0.9%
N 32
Compute PMT ($469,367.01)
ans = ($469,367.01)
0 0
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