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1. The 25 year old invests $2,000 a year until the age of 65 The 35...

1. The 25 year old invests $2,000 a year until the age of 65
The 35 year old invests $2,000 a year until the age of 65

We’ll assume they both get the same rate of return on their dollar, in this example we’ll use 8%. Where will each of them be when they reach the age of 65? What is the difference in the two investment choice? Place the difference between the two $ amounts as your final answer. use two decimals

2.

Find the NPV  of the following cash flows.  The cost of capital is 10%.

Period                          0             1                   2                      3                      4                      

Cash Flow         - $80,000       $15,000    $10,000        $40,000           $40,000        

Indicate if you get a negative cash flow with a - sign.

3.You bought a $400k condo. You got a 15-year fixed-rate mortgage and made a 20% down payment. Your interest rate is 5% annually. What is your monthly payment?

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jeff jeffy answered 1 year ago
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