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Your client 40 years old. She wants to begin saving
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# Question : Your client 40 years old. She wants to begin saving : 9013

Your client is 40 years old. She wants to begin saving for retirement with the first payment to come one year from now. She can save s500 per year, and you advise her to invest it in the stock market, which you expect to provide return of 9% in the future. If she follows your advice, how much money will she have at 65? How much will she have at 70? She expects to live for 20 years if she retires at 65 and for 15 years if she to withdraw her investments continue to earn the same rate, how much will she be able at the end of each year after retirement at each retirement age? A rookie quarterback is negotiating his first NFL contract. His opportunity cost is 10%. He been offered possible 4-year Payments are guaranteed, and they would be made at the end of each year. Terms of each contract are as follows: As his adviser, which contract would you recommend that he accept? Crissie just won the lottery, and she must choose among three award options. She can elect to receive a lump sum today of \$61 million, to receive 10 end-of-year payments of \$9.5 million, or to receive 30 end-of-year payments of \$5.5 million If she thinks she can earn 7% annually, which should she choose? she expects to earn 8% annually, which is the best choice? she expects to earn 9% annually, which option would you recommend? Explain how interest rates influence her choice.

## Solution 5 (1 Ratings )

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Finance 1 Year Ago 106 Views