Question 1
Your friend just won the lottery. She has the choice of $16,000,000 today or a23-year annuity of $1,180,000, with the first payment coming 1 year from today. What rate of return is built into the annuity?
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3.79%
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3.18%
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4.94%
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4.79%
Question 2
Your sister turned37today, and she is planning to save $6,000 per year for retirement, with the first deposit to be made 1 year from today. She will invest in a mutual fund that will provide a return of9% per year. She plans to retire28years from today, when she turns 65, and she expects to live for23years after retirement, to age88. Under these assumptions, how much can she spend in each year after she retires? Her first withdrawal will be made at the end of her first retirement year.
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$57,623
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$60,408
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$70,751
◦
$75,714
This couple, a brother and sister in Germany and the proud parents of this child, are challenging ...
Overfished per year
Elizabeth, a married 35-year-old woman, always thought that she followed a sensible diet
Sister Clade Example