Part 1
What is the present value of $4,000 paid at the end of each of the next76years if the interest rate is12%per​ year?
The present value is ?
​(Round to the nearest​ cent.)
Part 2
Assume that your parents wanted to have $180,000 saved for college by your 18 th birthday and they started savin your first birthday. They saved the same amount each year on your birthday and earned 12.0% per year on their investments. a. How much would they have to save each year to reach their goal? b. If they think you will take five years instead of four to graduate and decide to have $220,000 saved just in case, much would they have to save each year to reach their new goal? a. How much would they have to save each year to reach their goal? To reach the goal of $180,000, the amount they have to save each year is $____(Round to the nearest cent.) Part 3
You are trying to decide how much to save for retirement. Assume you plan to save $5,500 per year with the first investment made one year from now. You think you can earn 11.0% per year on your investments and you plan to retire in 39 years, immediately after making your last $5,500 investment. a. How much will you have in your retirement account on the day you retire? b. If, instead of investing $5,500 per year, you wanted to make one lump-sum investment today for your retirement that will result in the same retirement saving, how much would that lump sum need to be? c. If you hope to live for 19 years in retirement, how much can you withdraw every year in retirement (starting one year after retirement) so that you will just exhaust your savings with the 19th withdrawal (assume your savings will continue to earn 11.0% in retirement)? d. If, instead, you decide to withdraw $576,000 per year in retirement (again with the first withdrawal one year after retiring), how many years will it take until you exhaust your savings? (Use trial-and-error, a financial calculator: solve for "N", or Excel: function NPER) e. Assuming the most you can afford to save is $1,100 per year, but you want to retire with $1,000,000 in your investment account, how high of a return do you need to earn on your investments? (Use trial-and-error, a financial a. How much will you have in your retirement account on the day you retire? The amount Question Viewer account in 39 years would be $ ____ (Round to the nearest cent.)