Question

1. You plan to save $1000 per year in your retirement account beginning today. You expect your retirement account has a 6% annual return. How much will you have in your retirement account 25 years from now (Note: this is an annuity due)?         
2. Suppose the U.S. Treasury offers to sell you a bond for $900. No payments will be made until the bond matures 3 years from now, at which time it will be redeemed for $1,000. What interest rate would you earn if you bought this bond at the offer price?
3. If you plan to double your investments in your retirement account with an annual return at 8%, how many years will it take?
4. Last year the sales of a company were $100 million. If sales grow at 11.5% per year, how large (in millions) will they be 5 years later?

Please show work using Excel

Answer 1

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