Finance Assignment | Professional Writing
1. A company promises to pay you, and your descendants, $1,000 per year forever. Your required rate of return is 10 percent. What is the most you would pay for this perpetuity?
2. You wish to have $3,000,000 saved in your retirement account by the time you retire and you plan on retiring in 35 years. You can earn 4.5 percent per year on your money. How much must you put away each year to have $3,000,000 in 35 years if you make your first deposit today?
3. You wish to have $3,000,000 saved in your retirement account by the time you retire and you plan on retiring in 45 years. If you can earn 6 percent per year on your money, how much must you put away today to have $3,000,000 in 45 years?
Get Finance homework help today