Question 2 (A)

interest rate 9%
Annual Deposit 6697.021872
Annual Withdrawl 100000

Account
Deposit at
Balance at
Year Beginning
beginning of
of Year
year
1 0 6697.02187
2 7299.7538401 6697.02187
3 15256.485526 6697.02187
4 23929.323063 6697.02187
5 33382.715979 6697.02187
6 43686.914257 6697.02187
7 54918.49038 6697.02187
8 67160.908354 6697.02187
9 80505.143946 6697.02187
10 95050.360742 6697.02187
11 110904.64705 6697.02187
12 128185.81912 6697.02187
13 147022.29668 6697.02187
14 167554.05723 6697.02187
15 189933.67622 6697.02187
16 214327.46092 6697.02187
17 240916.68624 6697.02187
18 269898.94184 6697.02187
19 301489.60044 6697.02187
20 335923.41832 6697.02187
21 373456.27981 6697.02187
22 414367.09884 6697.02187
23 458959.89157 6697.02187
24 507566.03565 6697.02187
 25 560546.7327 6697.02187
26 618295.69249 6697.02187
27 681242.05865 6697.02187
28 749853.59777 6697.02187
29 824640.17541 6697.02187
30 906157.54504 6697.02187
31 995011.47793 -100000
32 975562.51094 -100000
33 954363.13693 -100000
34 931255.81925 -100000
35 906068.84298 -100000
36 878615.03885 -100000
37 848690.39235 -100000
38 816072.52766 -100000
39 780519.05515 -100000
40 741765.77011 -100000
41 699524.68942 -100000
42 653481.91147 -100000
43 603295.2835 -100000
44 548591.85902 -100000
45 488965.12633 -100000
46 423971.9877 -100000
47 353129.46659 -100000
48 275911.11859 -100000
49 191743.11926 -100000
50 99999.999993 -100000

Using Formula
 interest rate 9%
Annual Deposit 50000
Annual Withdrawl 100000

Numerator 68802.88583
Denominator $10.27
Annual Deposit $6,697.02

This is a retirement problem in which I have deposited for 30 years till 65 and after

part (b)

Loan Ammount 580000

Installments 10
Interest rate 12%
Payement $102,650.82
Payement No Installment
1
2 ###
3 ###
4 ###
5 ###
6 ###
7 ###
8 ###
9 ###
10 ###
Part C

Year Cash Flow

0 -245
1 200
2 200
3 200
4 200
5 -175

First IRR 68%

Second IRR 68%
 Interest
Total in
Earned
Account
During
Ending Year
Year
602.731968 7299.75384
1259.70981 15256.48553
1975.81567 23929.32306
2756.37104 33382.71598
3607.17641 43686.91426
4534.55425 54918.49038
5545.3961 67160.90835
6647.21372 80505.14395
7848.19492 95050.36074
9157.26444 110904.647
10584.1502 128185.8191
12139.4557 147022.2967
13834.7387 167554.0572
15682.5971 189933.6762
17696.7628 214327.4609
19892.2035 240916.6862
22285.2337 269898.9418
24893.6367 301489.6004
27736.796 335923.4183
30835.8396 373456.2798
34213.7972 414367.0988
37895.7709 458959.8916
41909.1222 507566.0357
46283.6752 560546.7327
51051.9379 618295.6925
56249.3443 681242.0587
61914.5172 749853.5978
68089.5558 824640.1754
74820.3478 906157.545
82156.911 995011.4779
80551.033 975562.5109
78800.626 954363.1369
76892.6823 931255.8193
74813.0237 906068.843
72546.1959 878615.0389
70075.3535 848690.3923
67382.1353 816072.5277
64446.5275 780519.0551
61246.715 741765.7701
57758.9193 699524.6894
53957.222 653481.9115
49813.372 603295.2835
45296.5755 548591.859
40373.2673 488965.1263
35006.8614 423971.9877
29157.4789 353129.4666
22781.652 275911.1186
15832.0007 191743.1193
8256.88073 100000
0.00 0.00
years till 65 and after that I have withdrawl 20 years til 80

Interest Principal Balance

580000
69600 $33,050.82 $546,949.18
65633.9022 $37,016.91 $509,932.27
61191.8726 $41,458.94 $468,473.33
56216.7995 $46,434.02 $422,039.31
50644.7176 $52,006.10 $370,033.22
44403.9859 $58,246.83 $311,786.39
37414.3664 $65,236.45 $246,549.94
29585.9925 $73,064.82 $173,485.11
20818.2138 $81,832.60 $91,652.51
Question 3

Do 4
g1 28%
g2 7%
ke 14%

v 61.1429