1) X will retire at 60. Age is presently 50. Expects to live till 70. Assume 20% return, what amount must he have at 60 to receive, £10,000 annually from retirement till death?
2) Y has 36-month loan of £50,000 at 12% per annum. What's his monthly loan repayment?
3) Firm Q has £1,000,000 outstanding bond issues. Assume it can earn 8% per annum on its investment, how much would it need to invest each year in order to accumulate enough money to retire the bond at the end of 20 years?
4) Equipment purchased for £Y depreciates at 10% annually and is sold as a scrap when its present value is less than 1/5 of its purchase value. After how many years will the equipment be discarded?
2) Y has 36-month loan of £50,000 at 12% per annum. What's his monthly loan repayment?
3) Firm Q has £1,000,000 outstanding bond issues. Assume it can earn 8% per annum on its investment, how much would it need to invest each year in order to accumulate enough money to retire the bond at the end of 20 years?
4) Equipment purchased for £Y depreciates at 10% annually and is sold as a scrap when its present value is less than 1/5 of its purchase value. After how many years will the equipment be discarded?
