Reference no: EM132811976
1. You are planning to retire in 15 years, you've determine that you can afford to save $500 per week. How much will you have saved at the end of the 15 years, if you can earn 6% compounded quarterly?
2. You are planning to retire in 35 years, you've determine that you can afford to save $200 per week. How much will you have saved at the end of the 35 years, if you can earn 5.7% compounded Monthly?
3. Someone has offered you $50 per week for the rest of your life, if the discount rate is 10%, how much would you be willing to pay for this cashflow?
4. You want to buy a house in Scarborough for $563,000. You plan to make a down payment of $73,190 and you intend to borrow the remainder with a mortgage. The bank offers you a 5 year term and quotes a rate of 5.95% compounded sem-annually, amortized over a 25 year period. You elect to make semi-monthly (bimonthly payments ie-2 payments per month). How much will you owe at the end of the 5 year period?
5. You've won the lottery, a $1000 per week cash payment for 25 years, then a lump sum payment of $1,000,000. If the interest rate is 8%, how much will you be willing to accept today instead?