Professor Molloy plans to purchase a custom Maserati in five years in order to stave off a midlife crisis. He would like to have the sum of $200,000 in his Maserati purchase fund in exactly five years Using either the tables from Appendix E in your textbook or a financial calculator, determine the amount Professor Molloy would have to invest today in order to have his Maserati purchase fund grow to exactly $200,000 in five years if he can earn 12% annual interest rate, compounded quarterly. Select the answer that is closest to (within $250 above or below) what you calculated. If an answer is more than $250 away from what you calculated, you should consider it incorrect.

You decide to make monthly payments into a retirement fund earning 4.75% compounded monthly. Note: Payments are made at the end of each period.

You plan to retire in exactly 20 years. Your goal is to create a fund that will allow you to receive $20,000 at the end of each year for the 30 years between retirement and death (a psychic told you would die exactly 30 years after you retire). You know that you will be able to earn 11% per year during the 30-year retirement period.   How large a fund will you need when you retire in 20 years to provide the 30-year, $20,000 retirement annuity? How much will you need today as a single amount to provide the fund calculated in part a if you earn only 9% per year during the 20 years preceding retirement? What effect would an increase in the rate you can earn both during and prior to retirement have on the values found in parts a and b? Explain. d.         Now assume that you will earn 10% from now through the end of your retirement. You want to make 20 end-of-year deposits into your retirement account that will fund the 30-year stream of $20,000 annual annuity payments. How large do your…

he Sandhill are planning for a retirement home. They estimate they will need $228,000 4 years from now to purchase this home. Assuming an interest rate of 11%, what amount must be deposited at the end of each of the 4 years to fund the home price?