Time Value of Money Quiz - Question1:$175,.Hewillassumehis accountwillearn7%annually.,how A:$45,150 Question2:

Time Value of Money Quiz - Question1:$175,.Hewillassumehis...

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Quiz - Time Value of Money Question 1: Barry Cuda would like to save $175,000 over the next 20 years. He will assume his  account will earn 7% annually. If Barry decides to make a single deposit into his account,  how  much would he need to deposit today? A: $45,150  Question 2: Ella Funt would like to set up her retirement account that will begin in 40 years.  To  play it safe, she wants to assume that she will live forever and she will withdraw $160,000 annu- ally. Assuming her account will earn 10% interest during the next 40 years and 5% interest af- terwards forever, how much will Ella need to save annually over the next 40 years to fund her  retirement account? A: $12,088 Question 3: Bob Katz is purchasing a new Honda Pilot for $32,000.  He is financing $28,000  with a six year, 4% loan with annual payments. Construct an amortization schedule, in the 2nd 
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  • Fall '14
  • Garrett
  • Time Value Of Money, retirement account, new Honda Pilot, annual payments. Construct

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