Jessica's utility of income is represented by: U(I) = V(241) where I represents annual income. She is offered a job that has a 0.3 chance of earning $21970 and a 0.7 chance of earning $62150 a year. How much would Jessica be willing to pay to insure against the risky income? Answer: $ (DO NOT ROUND YOUR CALCULATIONS UNTIL YOU REACH THE FINAL ANSWER. ENTER YOUR RESPONSE ROUNDED TO TWO DECIMAL PLACES. AND NO SEPARATOR FOR THOUSANDS.)
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- B. Barney and Alyson agree on the price calculated above. Ignoring tax and any other expenses, what is the effective annual return that Alyson has made on her investment? Recall that she has received 2 payments of $37 and the sale price. Give your answer as a percentage to 4 decimal places.Sue plans to save $4899, $0, and $5624 at the end of Years 1 to 3, respectively. What will her investment account be worth at the end of the Year 3 if she earns an annual rate of 5.55 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)Sue plans to save $4765, $0, and $5419 at the end of Years 1 to 3, respectively. What will her investment account be worth at the end of the Year 3 if she earns an annual rate of 5.98 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Note: It is highly recommended to use Excel (or Google Sheets) or a financial calculator to solve this problem.
- Please show working. Please answer a, b, and c Your client is 35 years old. She wants to begin saving for retirement, with the first payment to come one year from now. She can save $7,000 per year, and you advise her to invest it in the stock market, which you expect to provide an average return of 8% in the future. a. If she follows your advice, how much money will she have at 65? Do not round intermediate calculations. Round your answer to the nearest cent. $ _________ b. How much will she have at 70? Do not round intermediate calculations. Round your answer to the nearest cent. $ ________ c. She expects to live for 20 years if she retires at 65 and for 15 years if she retires at 70. If her investments continue to earn the same rate, how much will she be able to withdraw at the end of each year after retirement at each retirement age? Do not round intermediate calculations. Round your answers to the nearest cent. Annual withdrawals if she retires at 65: $ ____________ Annual…Question and my answer is below. Can you help me determine what I have done incorrectly? I believe it may be with the PMT line. I selected 0 because it doesn't say that her payments will be reinvested. investment you made in a friend’s business. She will pay you $22,809 at the end of this year, $45,618 at the end of next year, and $68,427 at the end of the year after that (three years from today). The interest rate is 11.5% per year. What is the PV of your windfall? Financial Calculator: N = 1 year I/Y = 11.5% *Note: Only place 11.5 press I/Y; no division or equal sign like mortgage FV = 22,809 PMT = 0 *Note: Payment here is any additional deposits. It says she pays you, not reinvest) CPT PV = 20,456.50 b. What is the FV of your windfall in three years? Financial Calculator: N = 3 year I/Y = 11.5% *Note: Only place 11.5 press I/Y; no division or equal sign like mortgage PV = 68,427 PMT = 0 *Note: Payment here is any additional deposits. It says she pays you, not reinvest)…Paul just graduated from college and landed his first "real" job, which pays $33,200 a year. In 5years, what will he need to earn to maintain the same purchasing power if inflation averages 4 percent The future value, FV, Paul will need to earn if inflation averages 4 percent is blank (Round to the nearest cent.)
- Suppose an individual at age 25 has an annual income of $50,000 and that this income is expected to grow at an annual rate of 2% a year over the course of her career. Assuming that she is expected to retire at the 60, what is the discounted value of her lifetime earnings? Use a discount rate of 3% when making your calculations.Mary, who is married and the mother of three, is 35 years and expects to work until 75. She earns $55,000 per year. Mary expects inflation to be 3% over her working life, and the appropriate risk-free discount rate is 5%. Her personal consumption is equal to 27% of her after-tax earnings, and her combined federal and state marginal tax bracket is 15%. 1) What is the amount of life insurance necessary for Mary using the Human Life Value method? Solve it correctly. I'll rateI am currently 42. If you are going to retire at 65, post-retirement living expenses are $20,000 annual, an average annual market return of 6%, life expectancy of 90. How much do you need to save for your retirement? (Please use the TVM calculation to solve for this question, and your answers would be different because your age varies.)
- Suppose your first job pays you Php 300,000 annually. Answer the following questions assuming (a) you are unmarried, and (b) you are married with two young children. Let see how your allocation change. What percentage should your cash reserve contain?How many years would it take save an adequate amount for retirement if he deposits $2,100 per month (at the end of each month) into an account that pays 11 percent per year if he wishes to have a total of $1,000,000 at retirement? m Nper (or N) =n*m Rate (or I/Y)=i/m PV PMT FV Must identify variables and use excelI am 40 years old. If you are going to retire at 65, post-retirement living expenses are $20,000 annual, an average annual market return of 6%, life expectancy of 90. How much do you need to save for your retirement? (Please use the TVM calculation to solve for this question, and your answers would be different because your age varies.)