u just turned 20 and decide that you would like to save up enough money so as to be able to withdraw $100,000 per year for 15 years after you retire at age 65, with the first withdrawal starting on your 66th birthday. How much money will you have to deposit each month into an account earning 5% per year (interest compounded monthly), starting one month from today, to accomplish this goal? Q2: A company wants to raise $2 million by issuing 15-year zero coupon bonds with a face value of $1,000. Their investment banker informs them that investors would use a 3.5% percent discount rate on such bonds. At what price would these bonds sell in the market place assuming semi-annual compounding? How many bonds would the firm have to issue to raise $2 million?

Hi There! I solved the problem below, but can you answer the question and put everything on an excel spreadsheet and show the formulas please for the questions below. You are offered the opportunity to put some money away for retirement. You will receive 10 annual payments of $5,000 each beginning in 26 years. If you desire an annual interest rate of 12% compounded monthly, answer the following two questions:   How much would you be willing to invest today? How much would the money (that you will be willing to invest today) be worth at the end of your last payment (i.e., in year 35)?   Amount that you would be willing to invest today = PV = $5,000/(1.01)26*12 + $5,000/(1.101)27*12 + $5,000/(1.01)28*12 + $5,000/(1.01)29*12 + $5,000/(1.01)30*12 + $5,000/(1.01)31*12 + $5,000/(1.01)32*12 + $5,000/(1.01)33*12 + $5,000/(1.01)34*12 + $5,000/(1.01)35*12 = $1,388.638 Amount that would the money worth at the end of your last payment = FV = $1388.64 * (1+ 0.01)35*12 = $90691.52

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A.) You want to have $350,000 saved up by the time you retire in 30 years, How much would you need to deposit each month into a savig account earning 6.5% annual interest to achieve this goal? Round to the nearest cent, if necessary.  Excel formula: Your answer: