Question

please explain

ars with an accumulated portfolio valus that must be invested at the end of each an annual rate of return of 6% 3. A man plans to retire in 35 years with a (a) Calculate the amount that must 35 years, assuming an annual n=35 EVA1500,000 PMT2 FVA 1) ed portfolio value of $1,500,000. the end of each year for the next i..ou [13460.8 (b) Apply the financial function command (with each numerical value reported in correct sequence) that would solve this problem. = PMT (.06. 35, 0,1500000) 4. A woman expects to receive $80,000 in 12 years. (a) Assuming an annual rate of return of 4.75%, compounded monthly, calculate the value of this investment now, FV: 80,000 80,000 con PV: n: 12 2 12.0475 (45292.9 (b) Apply the financial function command (with each in correct sequence) that would solve this pro ntil chion command (with each numerical value reported vould solve this problem. = Pv1.00396, 144, 0, 10000)

Answer 1

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3.
a.

In this case Years or n = 35, interest or i = 6%, Future value = 1,500,000

Using the Annuity formula

PMT = 13,460.8

b.

=PMT(6%,35,,1500000)

Answer would be 13,460.79 per annum

4.

a.

PV = FV X 1 / (1 + r)^n = 80,000 X 1/(1+4.75%/12)^144 = 80,000 X 0.566162 = $ 45,292.97

b.

=PV(4.75%,12,,80000)

Answer would be $ 45,839.68