You are quoted an interest rate of 6% on an investment of $10 million. What is the value of your investment after four years if interest is compounded as follows? Note: Enter your answers in dollars, not millions of dollars. Do not round intermediate calculations. Round your answers to the nearest whole dollar amount. a. Annually b. Monthly c. Continuously a. Future value b. Future value c. Future value

You estimate that by the time you retire in 35 years, you will have accumulated savings of $2.3 million. a. If the interest rate is 9.5% and you live 15 years after retirement, what annual level of expenditure will those savings support? (Do not round intermediate calculations. Enter your answer in whole dollars rounded to 2 decimal places.) Annual expenditure $ Real annual expenditure 293,809.56 b. Unfortunately, inflation will eat into the value of your retirement income. Assume a 4% inflation rate and work out a spending program for your $2.3 million in retirement savings that will allow you to increase your expenditure in line with inflation. What will be your expenditure amount in real terms for each year of your retirement? (Do not round intermediate calculations. Enter your answer in whole dollars rounded to 2 decimal places.)

What is the present value of $1,300 due in 14 years at a 7 percent interest rate and 12 percent interest rate? Do not round intermediate calculations. Round your answers to the nearest cent. Present value at 7%: $ Present value at 12%: $ Explain why the present value is lower when the interest rate is higher. I. The less interest you can earn during an investment period, the less you need to invest today to receive a particular amount in the future. II. The more interest you can earn during an investment period, the less you need to invest today to receive a particular amount in the future. III. The more interest you can earn during an investment period, the more you need to invest today to receive a particular amount in the future. -Select- v

You need $25,356 at the end of 9 years, and your only investment outlet is an 9 percent long-term certificate of deposit (compounded annually). With the certificate of deposit, you make an initial investment at the beginning of the first year. Use Appendix B and Appendix C for an approximate answer, but calculate your final answer using the formula and financial calculator methods.   a. What single payment could be made at the beginning of the first year to achieve this objective? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)       b. What amount could you pay at the end of each year annually for 9 years to achieve this same objective? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)