Determine the size of annual deposits that she must make

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1. Maria is 40 years old today and is beginning to plan for her retirement. She wants to set aside an equal amount at the end of each of the next 20 years so that she car retire at age 60.

She expects to live to an age of 90 and wants to be able to withdraw $35,000 per year from the account on her 61st through 90th birthdays. The account is expected to earn 7 interest per year for the entire period of time. Determine the size of the annual deposits that she must make.

$11,335.83

$3,925.33

$10,594.24

$25,672.57

2. Compute the PI statistic for Project X and note whether the firm should accept or reject the project with the cash flows shown below if the appropriate cost of capital is 6 percent. Time: 0 1 2 3 4 5 Cash flow: -84 -84 0 119 94 69

Reference no: EM131916418

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