Charlie Stone wants to retire in 35 years(he is currently 22) and be able to withdraw $250,000 per year for 15 years. Charlie wants to receive the first payment at the end of the 35th year. Using annual interest rate of 10%, how much should Charlie deposit at the end of each of the 35 years in order to achieve this goal? The answer is $7,717.65 but I am looking for an explaination of the problem and the steps to solve it.
A firm issued 2 million worth of commercial paper that has a 90 day maturity and sells for 1,900,000. The bond equivalent yield on the issue of commercial paper is closest to: I don't know the answer to this problem but the options are a. 5.54% b.10.02% c.17.79% d.21.34% e. none of the above