1. You plan to retire in 40 yrs. To provide for your retirement, you initiate a savings program of $4,000 per yr yielding 7 percent. What will be the value of the retirement fund after 40 yrs? Solution please
2. An Exxon bond (par value 100) has a maturity if 14 years and a coupon interest rate of 5.40%. If you require a yield to maturity of 6.1% on similar risk bonds, what is the value price of this bond?
3. Rosina plans on saving $2,000 a year and expects to earn an annual rate of 8.8 percent. How much will she have in her account at the end of 43 years?