In December 2022, the Fed raised interest rates to their highest levels in 15 years.  This makes borrowing more expensive, but makes savings more valuable.  After years of near-zero interest rates on savings accounts, many banks are offering savings rates of nearly 4%.  This is a pretty good risk-free return.  Suppose that you deposit $10672 into a savings account that earns 4%.  If interest rates do not decrease and you you withdraw your money in 40 years, what is your minimum withdrawal?  In other words, how much will you withdraw if interest rates stay at 4%?

In saving for a future major purchace, Oksana has been making uniform deposits of $5,000 per year in an account that has earned variable annual interest rates of i1 = 12 = i3 = 5% and i4 = i5 = 7% (see cash flow diagram below). How much does she have in the account immediately after making the last deposit? The account will have $ i₁ i₂ m i3 (Round to the nearest dollar.) i5

Consider two local banks. Bank A has 100 loans outstanding, each for $1.3 million, that it expects will be repaid today. Each loan has a 3% probability of default, in which case the bank is not repaid anything. The chance of default is independent across all the loans. Bank B has only one loan of $130 million outstanding, which it also expects will be repaid today. It also has a 3% probability of not being repaid. Calculate the following: a. The expected overall payoff of each bank. b. The standard deviation of the overall payoff of each bank. a. The expected overall payoff of each bank. The expected overall payoff of Bank A is $☐ million. (Round to two decimal places.)

You are thinking about investing $4,692 in your​ friend's landscaping business. Even though you know the investment is risky and you​ can't be​ sure, you expect your investment to be worth $5,738 next year. You notice that the rate for​ one-year Treasury bills is 1%. ​However, you feel that other investments of equal risk to your​ friend's landscape business offer an expected return of 8% for the year. What should you​ do?.