Your sister turned 35 today, and she is planning to save $7,000 per year for retirement, with thefirst deposit to be made one year from today. She will invest in a mutual fund that's expected toprovide a return of 7.5% per year. She plans to retire 30 years from today, when she turns 65, and sheexpects to live for 25 years after retirement, to age 90. Under these assumptions, how much can shespend each year after she retires? Her first withdrawal will be made at the end of her first retirementyear. a.$58,601b.$61,686c.$64,932d.$68,17 9e.$71,588

What’s the present value of a perpetuity that pays $250 per year if the appropriate interest rate is 5%? $4,750 $5,000 $5,250 $5,513 $5,788what is the present value of the following cash flow stream at a rate of 8.0%, rounded to the nearest dollar? cash flows: today (t = 0) it is $750, after one year (t = 1) it is $2,450, at t = 2 it is $3,175, and at t=3 it is $4,400. draw a time line. $7,917 $8,333 $8,772 $9,233 $9,695

Which of the following comes after a period of recession in the business cycle? a. stagflation b. a drought c. a boom d. recovery

Martha is one producer in the perfectly competitive jelly industry. last year, martha and all of her competitors found themselves earning economic profits. if there is free entry and exit, what do you expect to happen to the number of suppliers in the industry and the price of jelly? the number of suppliers will increase, and the price of jelly will fall. the number of suppliers will decrease, and the price of jelly will increase. the number of suppliers will increase, and the price of jelly will increase. the number of suppliers will decrease, and the price of jelly will fall.