Calculate the present value of the coupons. Calculate the present value of the maturity value. Suppose you have 25 years to retire and save 8,000 per annum at an assumed investment rate of 7%.
Remember, read the questions, and don’t overthink them. You can answer all questions in excel You need to buy a computer system in 3 years for $37,000. The interest rate is 5 %. How much do you set aside now to buy the system? You have 9,000 set aside now, and it is expected to […]