1. Assume you deposit $3,000 today, and $300 at the end of each year, in an account earning 4% per year for 20 years. What is the future value?
1. Assume you deposit $3,000 today, and $300 at the end of each year, in an account earning 4% per year for 20 years. What is the
2. General Electric has an unfunded pension liability of $300 million that must be paid in 15 years. The CFO deposits $10 million in account today to help meet this goal, and will also deposit $8 million at the end of the next 15 years, to meet this liability. What annual rate of interest must the account earn to meet the liability?
3. What is the
4. What is the present value of an annuity due that promises $20,000 per year for 20 years if the appropriate discount rate is 5%?
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