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NEED HELP WITH THE ONE IN BOLD!!h. A 20-year-old student wants to save $5 a...

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Finance

NEED HELP WITH THE ONE IN BOLD!!h. A 20-year-old student wants to save $5 a day for her retirement. Every day she places $5 in a drawer. At the end of each year, she invests the accumulated savings ($1,825) in a brokerage account with an expected annual return of 8%.

1. If she keeps saving in this manner, how much will she have accumulated at age 65? PMT = 1,825, R= 8% , N= 65-20 = 45, FV= ? Calculated in EXCEL = =FV(0.08,45,-1825) = 705,372. 75.

2. If a 40-year-old investor began saving in this manner, how much would he have at age 65? Calculated in EXCEL = =FV(8%,25, -1825) = 133,418.34

3. How much would the 40-year-old investor have to save each year to accumulate the same amount at 65 as the 20-year-old investor? Calculated in EXCEL =PMT(8%,25,0,-705372.75) = 9648.64 i.

What is the present value of the following uneven cash flow stream? The annual interest rate is 4%.

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