1) Estimate the amount of life insurance you would have to buy in order to guarantee a payment of $50,000 (constant in terms of today’s dollars) each year to your family. Given a market interest rate of 11% and inflation rate 4%
2) How much should you invest annually to purchase a $50,000 car after 10 years? Assuming the price of the car increases by an average of 3% each year and the rate of return on your investment is 10%