# Define what is the present value of these returns

**Question description**

1. Marcia Stubern is planning for her golden years. She will retire in 20 years at which time she plans to withdraw $60,000 annually. She is expected to live for 20 years following her retirement. Her financial advisor thinks she can earn 9% annually. How much does she need to invest each year to prepare for her financial needs after her retirement?

2. Samauel Johnson invested in gold 1 ounce "double eagle" U.S. coins ten years ago, paying $185 at that time. He could sell these coins for $734 today. What rate of return did he earn on this investment?

3. The Swell Computer Company has developed a new line of desktop computers. It is estimated that the cash return generated by the new product line will be $800,000 / year for the first 5 years and then $500,000 / year for 3 year after that. The cash returns occur at the end of each year. Using a discount rate of 9%, what is the present value of these returns?

4.Ten years ago Harold black bought 100 shares of common stock of Country Homes for $37.50 per share. He just sold them (ten years later) for a total of $9,715.02 Assume there were not any dividend payments during this 10 years. What was Harold's rate of return.

5. Mr. Sullivan is borrowing $2 million to expand his business. The loan will be for 10 years at 12% and will be repaid in equal quarterly installments. What will the amount of the quarterly payments be?

I must show my work on each problem, Thank you for you help!!!

## Tutor Answer

Brown University

1271 Tutors

California Institute of Technology

2131 Tutors

Carnegie Mellon University

982 Tutors

Columbia University

1256 Tutors

Dartmouth University

2113 Tutors

Emory University

2279 Tutors

Harvard University

599 Tutors

Massachusetts Institute of Technology

2319 Tutors

New York University

1645 Tutors

Notre Dam University

1911 Tutors

Oklahoma University

2122 Tutors

Pennsylvania State University

932 Tutors

Princeton University

1211 Tutors

Stanford University

983 Tutors

University of California

1282 Tutors

Oxford University

123 Tutors

Yale University

2325 Tutors