In the following ordinary annuity, the interest is compounded with each payment, and the payment is made at the end of the compounding period. An individual retirement account, or IRA, earns tax-deferred interest and allows the owner to invest up to $5000 each year. Joe and Jill both will make IRA deposits for 30 years (from age 35 to 65) into stock mutual funds yielding 9.1%. Joe deposits $5000 once each year, while Jill has $96.15 (which is 5000/52) withheld from her weekly paycheck and deposited automatically. How much will each have at age 65? (Round your answer to the nearest cent.) $720,862.28 x $818,932.94 X Joe Jill
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- In the following ordinary annuity, the interest is compounded with each payment, and the payment is made at the end of the compounding period.An individual retirement account, or IRA, earns tax-deferred interest and allows the owner to invest up to $5000 each year. Joe and Jill both will make IRA deposits for 30 years (from age 35 to 65) into stock mutual funds yielding 9.8%. Joe deposits $5000 once each year, while Jill has $96.15 (which is 5000/52) withheld from her weekly paycheck and deposited automatically. How much will each have at age 65? (Round your answer to the nearest cent.) Joe $ Jill $14. In the following ordinary annuity, the interest is compounded with each payment, and the payment is made at the end of the compounding period.An individual retirement account, or IRA, earns tax-deferred interest and allows the owner to invest up to $5000 each year. Joe and Jill both will make IRA deposits for 30 years (from age 35 to 65) into stock mutual funds yielding 9.1%. Joe deposits $5000 once each year, while Jill has $96.15 (which is 5000/52) withheld from her weekly paycheck and deposited automatically. How much will each have at age 65? (Round your answer to the nearest cent.) Joe $ Jill $ 16. Calculate the present value of the annuity. (Round your answer to the nearest cent.) $11,000 annually at 5% for 10 years.Joel makes regular (end of term) deposits into his RRSP (Registered Retirement Savings Plan) that will be converted into an RRIF (Registered Retirement Income Fund) 20 years from now. During retirement Joel would like to receive $5,400 at the end of every six months for 22 years. If interest is 3.28% compounded semi-annually (for both the RRSP and RRIF). Answer the following questions, and round all answers to two decimal places where necessary. 1) How much money should Joel have in his RRIF to receive payments of $5,400 at the end of every six months? P/Y= PV = $ esc P/Y = PV = $ Submit Question 1 2) What payment will Joel have to make at the end of every six months into his RRSP so that there is enough money in his RRIF at the start of his retirement? Q A N C/Y= FI PMT= $ C/Y= PMT= $ 2 W S * X #3 80 F3 E N= D N= FV = $ FV = $ $ 4 Q F4 R LL I/Y = F I/Y = do 5 % T G 6 % % F6 Y & 7 H F7 U 00 * 8 DII FB ( 09 O
- Alan wants to save money for his daughter's graduation gift. He deposits 825 pesos at the end of each year in an ordinary annuity that pays 8% interest, compounded annually. Do not round any intermediate computations nor answers. Find the total value of the annuity at the end of the 2nd year.An individual earns an extra $1000 each year and places this money at the end of each year into an Individual Retirement Account (IRA) in which both the original earnings and the interest in the account are not subject to taxation. If the account has an annual interest rate of 7.5% compounded annually, how much is in the account at the end of 50 years? (Round your answer to the nearest cent.)l wishes to provide herself, or her estate, with an income of $10,000 at the end of each year for 10 years. She will make a lump sum deposit when the account is established and add $3000 at the end of each year for 12 years. The income is to start at the end of the year following the year in which the last deposit was made. Compute the lump sum deposit. (All interest rates are 7 Percent Compounded annually)
- James plans to fund his individual retirement account, beginning today, with 20 annual deposits of $2,000, which he will continue for the next 20 years. If he can earm an annual compound rate of 8 percent on his deposits, the amount in the account upon retirement will beLydia deposits $900 at the end of each year for 9 years in a savings account. The account pays 8% interest, compounded annually. Lydia calculates that the future value of the ordinary annuity is $11,238.80. What would be the future value if deposits are made at the beginning of each period rather than the end?Geoff has paid $16,000 for a retirement annuity from which he will receive $1,582 at the end of every six months. The payments are deferred for 11 years and interest is 4% compounded semi-annually. (a) How many payments will Geoff receive? (b) What is the size of the final payment? (c) How much will Geoff receive in total? (d) How much of what he receives will be interest?
- Shawn purchases a retirement annuity that will pay him $1,000 at the end of every six months for the first nine years and $300 at the end of every month for the next six years. The annuity earns interest at a rate of 2.8% compounded quarterly. a. What was the purchase price of the annuity? Round to the nearest cent b. How much interest did Shawn receive from the annuity? Round to the nearest centAt the time of her grandsons birth, a grandmother deposits 8,000 in an account that pays 2% compounded monthly. What will be the value of the account after the child’s 21st birthday, assuming that no other deposits or either are made during this periodEmerson Cammack wishes to purchase an annuity contract that will pay him $7,000 a year for the rest of his life. The Philo Life Insurance Company figures that his life expectancy is 20 years, based on its actuary tables. The company imputes a compound annual interest rate of 6 percent in its annuity contracts. a. How much will Cammack have to pay for the annuity? b. How much would he have to pay if the interest rate were 8 percent?