SHALLY

you are thinking of retiring. your retirement plan will pay you either $250,000 immediately on retirement or $350,000 five years after the date of your retirement. which alternative should you chose if the interest rate is a) 0% per year; b) 8% per year a...

1)You have just turned 30 years old, have just received your MBA, and have accepted your first job. Now you must decide how much money to put into your retirement plan. The plan works as follows: Every dollar in the plan earns 7% per year. You cannot make...

I solved it by myself :) I t was a interest rate on 350,000 !! The retirement plan will pay $250,000 immediately ‘OR’ Pays $350,000 after 5 years from the date of retirement with: a) Interest rate (r)=0% Then, the PV = FV/(1+r) n = 350,000/(1+0) 5 =$350,0...