Let’s say I am 50 years old and I want to retire in 10 years (age 60) and I want to have

$1,000,000 in the bank. How much do I have to deposit today if I can earn 8% per year

on my savings?

2) Now assume I just turned 60 and have my $1,000,000 and I go to a Dr. Appt and they

tell me that I am sick and will die in 5 years – how much per year can I withdraw and

spend evenly every year so that when I die at 65 I will not have anything left if I can

earn 8% per year on my savings?

3) If my parents helped me by putting $20,000 in a savings account when I was 20 years

old and did not tell me about it and just gave me a wonderful birthday present (access

to the account) this year, how much money would I have if I was 50 years old?

Assume the average annual return is 8%.

4) How much would I have if I started saving $2,000 per year when I was 20 years old

and earned 8% average annual return if I am now 50 (30 years)?

5) What if I have a small business and I want to sell it. How much should I sell it for if

my expected net income for the next three years is $5,000, $7,500 and $10,000

assuming I can earn 6% on my money? Hint: What is the value of the business today?

6) If I put $10,000 in the bank today and I can earn 8% per year on my investment, how

long will it take for me to have $31,700?