Money for some unexpected expenses

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Reference no: EM131446875

1. Jacob needed money for some unexpected expenses, so he borrowed $5,890.25 from a friend and agreed to repay the loan in seven equal installments of $1,250 at the end of each year. The agreement is offering an implied interest rate of:

A) 14.85%

B) 9.57%

C) 11.00%

D) 12.98%

2. Jacob's friend Wilson, has hired a financial planner for advice on retirement. Considering Wilson's current expenses and expected future lifestyle chnages, the financial planner has stated that once Wislon crosses a threshold of $8,452,622 in savings, he will have enough money for retirement. Wilson has nothing saved for his retirement yet, so he plans to start depositing $40,000 in a retirement fund at a fixed rate of 11.00% at the end of each year. It will take _____ years for Wilson to reach his retirement goal.

A) 30.55 years

B) 41.24 years

C) 38.19 years

D) 25.97 years

Reference no: EM131446875

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