Homework answers / question archive / 1)What is the future value (in $) of cash flows 1-3 at the end of year 3, assuming a 6% interest rate (compounded annually)? End of year Cash flow $500 870 830 1 2 4 3,500 1,250 4,530 2,350 6 7 2)You are planning your retirement and you come to the conclusion that you need to have saved $1000000million in 30 years

1)What is the future value (in $) of cash flows 1-3 at the end of year 3, assuming a 6% interest rate (compounded annually)? End of year Cash flow $500 870 830 1 2 4 3,500 1,250 4,530 2,350 6 7 2)You are planning your retirement and you come to the conclusion that you need to have saved $1000000million in 30 years

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1)What is the future value (in $) of cash flows 1-3 at the end of year 3, assuming a 6% interest rate (compounded annually)? End of year Cash flow $500

870 830 1 2 4 3,500 1,250 4,530 2,350 6 7

2)You are planning your retirement and you come to the conclusion that you need to have saved $1000000million in 30 years. You can invest into an retirement account that guarantees you a 11% annual return. How much do you have to put into your account at the end of each year to reach your retirement goal?

3)You found your dream house. It will cost you $300000 and you will put down $35000 as a down payment. For the rest you get a 30-year 5.0% mortgage. What will be your monthly mortgage payment in $ (assume no early repayment)?