Time Value of Money calculations using a Calculator
1. Your Auntie lyanka is 65 and has just retired. She has savings of 5250,000. She needs it to last for 30 years (everyone In your family mysteriously dies at exactly age 95). If you can achieve a 5% return, each and every year, how much can lyanka spend each year such that at her death the money is completely used up?
2. You have taken a job out of UGCS. Your new employer, Globo Gym, offers a retirement plan with two choices. Option M", you earn 2% every year. Or, option "13"i through their partnership with a local hedge fund, you appear to earn twice thatl The hedge fund will earn 57% the first year and -3% the second year, always. This is the pattern: +7% then - 3%. If you invest $100,000, for 40 years, what will be the ending wealth of option A? Of option a?