A financial planning service offers a college savings program. The plan calls for you to make four annual payments of $7,000 each, with the first payment occurring today, your child's 14th birthday. Beginning on your child's 18th birthday, the plan will provide $20,500 per year for four years.
Required:
What return is this investment offering? (Input answer as a percent rounded to 2 decimal places, without the percent sign. For example 36.16)
Investment rate
percent
Bilbo Baggins wants to save money to meet three objectives. First, he would like to be able to retire 30 years from now with a retirement income of $23,000 per month for 20 years, with the first payment received 30 years and 1 month from now. Second, he would like to purchase a cabin in Rivendell in 10 years at an estimated cost of $330,000. Third, after he passes on at the end of the 20 years of withdrawals, he would like to leave an inheritance of $730,000 to his nephew Frodo. He can afford to save $1,900 per month for the next 10 years.
Required:
If he can earn an 11 percent EAR before he retires and an 7 percent EAR after he retires, how much will he have to save each month in years 11 through 30?
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发表于 2008-2-2 03:24:00
