Hello. I am having trouble trying to figure out two problems I have in finance and was wondering if anyone could help me run through this. Help me find the steps to solve it.
1. fred has inherited 6,00 from the death of Barney. He would like to use this money to buy wilma a new rockmobile costing 7,000 for their 10th anniversity celebration which will take place in 2 years from now. Will fred have enough money to buy the gift if he deposits his money in an account paying 8 percent compounded semi annually?
2. herbert has openned a retirement fund account which pays 7 percent interest and requires 5,000 annual deposits. Herbert will retire in 15 yrs and expects 10 yrs of retirement life. What is the max. annual retirement benefit herbert can get during his retirement years?
Please help .
Thanks
Eric
