Abdirahman A.

asked • 10/21/16

Time Value of money

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.

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