A W.

asked • 09/07/14

Finance Time Value of Money Questions URGENT HELP NEEDED

Hello, Please help if you can. How do you solve these 4 (not the answers, just how to solve step by step ) thanks.

1. Calculate the future value at the end of twenty-five years of the following cash flows (CF's) if the rate of interest is 4.7-percent compounded annually: (i) Eight consecutive CF's of $389 at one year intervals beginning at the end of year 4 (t = 4) and (ii) Fourteen consecutive CF's of $457 at one year intervals beginning at the end of year twelve (t = 12).

2. Calculate the future value at the end of fifteen years (t = 15) if you deposit $919 at one year intervals for eight consecutive years (i.e. eight deposits) beginning at the end of year three (t = 3) and given that the rate of interest is 3.8-percent compounded annually.

3. Suppose that you are planning to retire in 35-years and you desire an annual income of $65,089 per year beginning at the end of year thirty-six and lasting for 40-years (i.e. 40 annual CF's). How much must you accumulate (i.e. save up) by the end of 35-years in order to finance all of your retirement disbursements if the rate of interest is 8.7-percent compounded annually?


4.Suppose that you are planning to retire in thirty years and you desire an annual income of $63,913 per year beginning at the end of year thirty-one and lasting forever. How much must you accumulate (i.e. save up) by the end of thirty years in order to finance all of your retirement disbursements if the rate of interest is 9-percent compounded annually?
Thank you 

1 Expert Answer

By:

Sherryse H. answered • 09/10/14

Tutor
3 (1)

Accounting, Income Tax, Excel

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