How many years will it take to exhaust her funds, i.e. run the account down to zero?
1. Your brother will receive €20,500 a year for the next 19 years as a result of a picture he has painted. If a discount rate of 13 percent is applied, should he be willing to sell out his future rights now for €172,000
2. Your sister will receive €19,500 for the next 20 years as a payment for a new song she has written. If a 10 percent rate is applied, should she be willing to sell out her future rights now for €160,000?
3. Your aunt’s employer was acquired by a competitor, and she was given a severance payment of €285,000, which she invested at a 6.5% annual rate. She now plans to retire, and she wants to withdraw €3,000 at the end of each year, starting at the end of this year. How many years will it take to exhaust her funds, i.e. run the account down to zero?
To be done in excel, using excel formulas