000. Price $300 Maturity (years) 30

Suppose you have $1,000,000 today and starting a year from now you intend to spend this money over the next 30 years. Assume the nominal rate of interest is 9.2%, inflation rate of 5% and the real rate of interest is 4%. How much can you spend annually in real dollar terms over the next 20 years to ensure constant spending in real terms?    A. $40,000.00  B. $57,830.10  C. $64,011.96  D. $73,581.75

Calculate the present value assuming an annual discount rate of 12.00%? Years: CFs: O $436.99 O $541.87 O $450.10 O $371.44 $493.80 0 1 2 3 $0 $75 $225 $0 $300

Present Value of Amounts Due Assume that you are going to receive $210,000 in 10 years. The current market rate of interest is 11%. a. Using the present value of $1 table in Exhibit 5, determine the present value of this amount compounded annually. Round to the nearest whole dollar. $fill in the blank 1 1,378, 329 b. Why is the present value less than the $210,000 to be received in the future? The present value is less due to the compounding of interest over the 10 years.