Reference no: EM132538122

Question 1. An investment offers $10,000 per year, every year for 25 years. If the required annual return is 9 percent, what is the value of the investment today? What would the value be if the payments occurred for forever?

Question 2. If you save $7,000 per year, each year for the next 35 years, how much money will you have in 35 years? Assume that the annual rate of return is 9 percent.

Question 3. If you invest $15,000 a year at the beginning of each year for the next 30 years in an account that earns 8 percent annual return, how much will you have in the account in 30 years?

Question 4. John Watts has just retired after 35 years with a company. His total pension funds have an accumulated value of $1,500,000, and his life expectancy is 25 more years. His pension fund manager assumes he can earn a 7 percent annual return on his assets. What will be his yearly annuity (i.e., the annual withdrawal amount) for the next 25 years?