Time Value of money

Question

Am 20 years old. I smoke, which cost me $200 per day. I expect to retire in the next 50 years. Actually I earn 7% annual interest on the money.

a)How much will I accept today so that I stop smoking?
b)I expect to live another 10 years after retirement, how much can I withdraw at the beginning of each year from the next 15 years from the retirement fund. Assuming 7% interest rates earning annually.

Answer 1

A = M([1+(i/q)]^nq-1)(q/i), where M = monthly deposit, i = interest rate,  q = number of calculations per year, n = number of years

 

A = 200([1 = 0.07/12]¹²⁽³⁰⁾ - 1) / (12/0.07)

 

Can you solve for A?