Reference no: EM132892493

Questions -

Q1) You are 25 years old and have not started saving for retirement yet. You want to retire at age 55 (30 years). You want $1,000,000 in your retirement savings account. You can earn 5% on average over the next 30 years. How much will you have to save at the end of each month in order to reach your goal?

Q2) If the appropriate interest rate is 8 percent, what is the present value of the following cash flow stream

Year 1 - $100

Year 2 - $400

Year 3 - $400

Year 4 - $300

Q3) A company is planning to invest $100,000 in order to receive $50,000 one year later, $40,000 two years later, and $60,000 three years later. Using a required rate of return of 16%, the amount shown below that is the closest to the net present value shown of this investment is....

a. -$11,000

b. $11,000

c. $111,000

d. $100,000