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Unformatted text preview: PV = $423,505 FV = 0 Pmt =? Use financial calculator to find out the value of payments. PMT = - 46,393.48 If the retirement age is 70: No. of years in retirement = 15 years PV = $681,550 FV = 0 Pmt =? Use financial calculator to find out the value of payments. PMT = - 84,552.33 QUESTION 2-33: FV for uneven cash flow: You want to buy a house within 3 years, and you are currently saving for the down payment. You plan to save $5000 at the end of the first year, and you anticipate that your annual savings will increase by 10 percent annually thereafter. Your expected annual return is 7 percent. How much would you have for a down payment at the end of year 3? Year Cash flows Future value factor @7% Future value of cash flows 1 5,000 1.07 5350 2 5500 1.145 6297.5 3 6050 1.225 7411.25 Total future value of cash flows = 19058.75...
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