中财年金复习题

Question One

Bilbo Baggins wants to save money to meet three

objectives.First,he would like to be able to retire30years from now with a retirement income of$23,000per month for20years,with the first payment received 30years and1month from now.Second,he would like to purchase a cabin in Rivendell in10years at an estimated cost of$320,000.Third,after he passes on at the end of the20years of withdrawals,he would like to leave an inheritance of$1,000,000 to his nephew Frodo.He can afford to save$2,100per month for the next10years.If he can earn an11percent EAR before he retires and an8percent EAR after he retires,how much will he have to save each month in Years11through30?

Question Two

Audrey Sanborn has just arranged to purchase a$550,000vacation home in the Bahamas with a20down payment.mortgage has a6.1percent stated annual interest rate,and monthly payments over the next30years.Her first payment will be due one month from now.However,the mortgage has an eight-year balloon payment,meaning that the balance of the loan must be paid off at the end of Year8.There were no other transaction costs or finance charges.How much will balloon payment in eight years?

and the other will begin17

expenses to be$45,000per

year per The annual interest rate

is7.5percent.account each year to fund

your children’s education?Your deposits begin one year from today.You will make

your last deposit when your oldest child enters college.Assume four years of college.