1. You are 21 year-old now and planning for your retirement. You are healthy and therefore expect to live long years. Based on your forecast, you feel that a monthly income of $10,000 starting at the age of 65 (at the end of 1st month) until the 90 year-old age will be enough. Assuming annual interest rate is 8% in the distribution period and 7% in the accumulation period, how much monthly contributions will be sufficient if you start to contribute at the end of this month (month-end contributions)?
a. $367.52
b. none of the above
c. $449.06
d. $343.84
e. $608.64
2. The number of time periods it will take before the cash inflows of a proposed project equal the amount of the initial project investment is known as:
a. none of the answers is correct.
b. net present value
c. payback period
d. mutually exclusive period
e. internal rate of return