1. How much would my annuity payment be if I wanted to save $2,000,000 over the next 25 years at 8%?
Use the FV of an annuity and solve for FV25
Please show your work.
2. Calculate the EAR of a 5% mortgage that is compounded monthly.
Please show your work.
3. When the discount rate is 8%, how much is a perpetuity that pays $10,000 per year worth?