
Homework Get help with your finance related homework. 

Thread Tools 
#1




A little bit of years and interest rate.
Hey!
I have an issue relating relating to a paper work assignment. Just need some clarifying to indicate I am on the correct path. Question asking me: Given the FV calculated in question 2, how much can you withdraw each month from the annuity if you expect to live for another 25 years and you would like to leave $10,000 for each of your two children? You predictions are that future interest rate will be the arithmetic mean of the last 25 year’s interest rates. Question 2, I already calculated which turns out to be: $119, 998.40 and I calculated the arthmetic mean to be 4% = 0.04% However I don't quite understand what it means by "You predictions are that future interest rate will be the arithmetic mean of the last 25 year’s interest rates". Can ya help me with this explanation? I really appreciate this because it's doing my head in.. 
Sponsors  