ADMS 3541 Lecture Notes - Pension, Debt Management Plan, Human Capital
23 Jan 2013
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Continuation : chapter 3: c, 80,000 for house that requires downpayment of 100,000 in 5 years. Answer: b: answer, a, constant growth annuity : none of the above. Detailed problems: assume pv 1500,000 , n = 30, i = 3%, then pmt 76528. What he gets is fv = 1500,000, pmt =- 5000, i = 10% , compute pv = 822, 470. Change goal : he can change his amount say instead of 76000 a year, change to about 36000: ( eat less later) Or he can change his time of retirement : fv 1500,000 , i = 10%, pmt -5000, you get 36. 1 years. Note : that you"d have to work a few more years( 6. 1 years plus) and so, you"d lower your expenses post retirement . Money down now: fv 1500,000 pmt- 5000, i = 10, n = 30 , you get pv = 38828. Larger payments : save more now ( eat less now ).
