An insurance and for 20 offers to annuity pay you $1,000 per quarter years. you want to earn a rate of return of 3.9% with quarterly compounding, what is the most you would be willing would be willing to pay today to obtain this annuity? If
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- You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years. Which table will help you determine the value of your account at the end of 12 years? A. future value of one dollar ($1) B. present value of one dollar ($1) C. future value of an ordinary annuity D. present value of an ordinary annuityAn insurance annuity offers to pay you $1,000 per quarter for 20 years starting immediately. If you want to earn an effective annual rate of return (EAR) of 6.5 percent, what is the most you are willing to pay as a lump sum today to obtain this annuity?An insurance annuity offers to pay you $1,000 per quarter for 20 years. If you want to earn a rate of return of 6.5 percent, compounded quarterly, what is the most you are willing to pay as a lump sum today to obtain this annuity?
- You buy an annuity that will pay you $24,000 annually for 25 years. The payments are paid on the first day of each year. What is the value of this annuity today if the discount rate is 8.5 percent? 241309 266498 258319 251409 245621 A O BO .C DO E OYou invest in an ordinary annuity $3,000 annually at 7% annual interest. What is the future value of the annuity at the end of five years? How much have you invested? How much interest has your annuity earned? E Click the icon to view the Future Value of $1.00 Ordinary Annuity table. The future value is $. (Round to the nearest cent as needed.)Your insurance agent is trying to sell you an annuity that costs $55,000 today. By buying this annuity, your agent promises that you receive payments of $285 per month for 30 years. What is the rate of return expressed as an APR on this investment? Multiple Choice O 3.91% 4.33% will
- Suppose you put $ 600 a month for retirement into an annuity earning 7.5% compounded monthly. If you need $ 550000 to retire, in how many years will you be able to retire?Suppose an annuity will pay $14,000 at the beginning of each year for the next 5 years. How much money is needed to start this annuity if it earns 6.5%, compounded annually? (Round your answer to the nearest cent.)$_____What is the future value of an ordinary annuity of $2,000 for 4 years, if interest rates are 6 percent ? Answer: Future Value of Annuity is $8749.23 Qusetion: What is the future value of the same annuity due?
- Sally Mander wants to set up a perpetual annuity for herself that will pay $85,000 annually that will begin 40 years from now. Assuming an interest rate of 8% and with the impact of inflation of 3%, how much will Sally need to save annually? $7,071 $8,073 O $6,562 O $9,075An annuity due pays $17,250 every year for the next 6 years and earns a 7.34% annual return. How much would it cost to purchase this annuity today? O 103,500 87,339 81,367 O 133,591Find the amount (future value) of the ordinary annuity. (Round your answer to the nearest cent.) $500/week for 9 years at 3.5 % / year compounded weekly Need Help? 10 Read It