| | Question | Answers |
| 1 | value of CD | $10,068.00 |
| 2 | Value of reinvested CD | $45,227.68 |
| | Value of Annuities due, | $82,843.29 |
| | Value of investment account now | $128,070.98 |
| 3 | Value of IRA now | $114,353.34 |
| 4 | Amount accumulated at early retirement | $242,424.32 |
| 5 | PV at age 45 | $242,424.32 |
| | PV at age 55 | $523,375.92 |
| | FV of anuity due at age 55 | $23,468.23 |
| | Total value of investment at age 55 | $546,844.15 |
| | Amount to withdraw each January 1 upon early retirement | $75,459.17 |
| | Explanation of working |
| | Question | Formula |
| 1 | value of CD | FV(7.25%,10,,-5000) |
| 2 | Value of reinvested CD | FV(6.75%,45-22,,-C2) |
| | Value of Annuities due, | FV(6.75%,45-22,-1500,,1) |
| | Value of investment account now | C4+C5 |
| 3 | Value of IRA now | FV(7%,45-22,-2000,,1) |
| 4 | Amount accumulated at early retirement | C6+C8 |
| 5 | PV at age 45 | C10 |
| | PV at age 55 | FV(8%,55-45,,-C10) |
| | FV of anuity due at age 55 | FV(8%,55-45,-1500,,1) |
| | Total value of investment at age 55 | C13+C14 |
| | Amount to withdraw each January 1 upon early retirement | PMT(8%,65-55,-C15,,1) |
PROVEN STERLING
sm10TimeValueofMoney.xlsx
