Suppose Brianna invests $1300 each year for 5 years, in annuity that pays 6% annual interest, compounded annually. What percentage of the balance, after 5 years, is Brianna's contributions?
Q: Assume that A contributes $2 000 every end of the year into a retirement account paying 8%. If A…
A: Given: Payment = $2,000 Interest rate = 8% Years = 30
Q: how long in years and months will she receive the payments
A: RRSP: RRSP stands for Registered Retirement Savings Plan. RRSP is a kind of retirement savings and…
Q: Maryann is planning a wedding anniversary gift of a trip to Hawaii for her husband at the end of 5…
A: Compound interest is a type of interest that includes the initial principal as well as all the…
Q: wishes to provide herself, or her estate, with an income of $10,000 at the end of each year for 10…
A: Deposit A Amount = 10,000 End of year deposits N = 10 years Deposit B Amount = 10,000 End of year…
Q: Adam purchases a retirement annuity that will pay him $1,500 at the end of every six months for the…
A: Semi Annual Payment $ 1,500.00 Time Period (years) 8 Interest rate 4% Monthly…
Q: Andrea is depositing P4, 000 each month in an ordinary annuity that pays 2% interest compounded…
A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
Q: Suppose Emily invests $2000 at the end of each quarter in an account with nominal interest rate 4%,…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Beverly is considering starting her small family business in five years’ time. She has decided to…
A: Ordinary annuity would be considered as the annuity payment made at the end of the year and annuity…
Q: At two years of age, Deja was given $700,000. The amount is put into a trust earning 5% monthly. If…
A: It is being given that when the withdrawals of certain amounts being made over the period of time…
Q: Twenty years ahead of her retirement, Kelly opened a savings account that earns 5% interest rate…
A: The future value of the annuity is the future worth of a cash flow series at a certain rate of…
Q: Ali contributed $1,000 per year for the past 9 years into an RRSP account, earning 3.8% compounded…
A: a) Ali leaves this amount ($10,496.48) for additional 5 years therefore, the worth after 5 years…
Q: Sharie is planning a wedding anniversary gift of a trip to Hawaii for her husband at the end of 3…
A: A concept that implies the future worth of the money is lower than its current value due to several…
Q: To save money for her son's college tuition, Nicole invests $96 every month in an annuity that pays…
A: Future value of investment includes the amount deposited and interest being accumulated over the…
Q: Crystal Nelson is 30 years old and she invests $3,300 in an annuity, earning a 8% compound annual…
A: PV = 0 N = 21 rate = 8% PMT = 3300 use FV function in Excel with type as 1
Q: Marryann is planning a wedding anniversary gift of a trip to Hawaii for her husband at the end of 3…
A: An Annuity is a continuous flow of systematic timely cash flows made or received for a stipulated…
Q: Maryann is planning a wedding anniversary gift of a trip to Hawaii for her husband at the end of 3…
A: Future value represents the future worth of existing cash flows. It is determined by compounding…
Q: Jennifer invests $2,400 at the end of each year for 11 years in an ordinary annuity at 10% interest…
A: Periodic Payment = $2,400 Time Period = 11 Years Interest Rate = 10%
Q: Anna purchases a retirement annuity that will pay her $2,000 at the end of every six months for the…
A: A concept through which it is studied that the current worth of money is higher than its future…
Q: Maria Alvarez is investing $300,000 in a fund that earns 4% interest compounded annually. What equal…
A: Compound interest refers to addition of interest to principal sum of loan or deposit.
Q: Ginger Rogers deposits $3,000 a year into her retirement account. If these funds have an average…
A: The future value function or concept can be used to determine the future value of a present sum or…
Q: If Bob and Judy combine their savings of $1,000 and $800,respectively, and deposit this amount into…
A:
Q: Maryann is planning a wedding anniversary gift of a trip to Hawaii for her husband at the end of 3…
A: The future value of ordinary annuity is the group of instalment payment of fixed amount at a certain…
Q: Willie deposits a fixed monthly amount into an annuity account for his child's college fund. He…
A: Future value of annuity = P * [ (1+r)^n - 1 ] /r Where, Future value of annuity = $75000 P =…
Q: Charles wants to retire in 17 years. At that time he wants to be able to withdraw $22,000 at the…
A: Here, Retirement will be in 17 years Amount withdrawn is $22,000 Time duration of withdrawals is 19…
Q: The Alavis have decided to invest in a their Son. college fund for They invested $50,000 deferred…
A:
Q: Mary plans to make the following contributions to her retirement account: $10,000 for each of the…
A: In order to find how much money she will have one has to calculate the future value after 20 years.
Q: At an interest rate of 7 - %, Karen borrows $4,000 for 13 years. How much interest will she pay?
A: Concept: The interest is the product of principal, time period and number of years that is divided…
Q: Amanda purchases a retirement annuity that will pay her $2,500 at the end of every six months for…
A: The term "annuity" depicts a series of cash flows with equal amounts occurring at equal time…
Q: Leon and Heidi decided to invest $2,500 annually for only the first eight years of their marriage.…
A: Amount invested annually “PMT” = $2500 Number of years of investment “n” = 8 Annual rate “r” = 8%…
Q: CFJ deposited P175,000 every 6 months for 5 years with an interest of 12% compounded semi-annually.…
A: The future value can be calculated using the FV Function in excel. FV = (RATE, NPER, PMT, PV, TYPE)…
Q: The terms of a single parent's will indicate that a child will receive an ordinary annuity of…
A: Interest, i=7%=0.07 p.a. Future value, S Ordinary annuity for 6 years, n=6 yearly payment, R =…
Q: Omar was given $1,000,000 on his 2nd birthday. The money is put into an account that pays 4%…
A: Annuity refers to series of equalized payments that are paid or received at start or ending of…
Q: 4. Mr. Thomas will receive $8,500 a year for the next 15 years from her trust. If a 7 percent…
A: Introduction: The present value of annuity due refers to the current value of a series of future…
Q: John borrows $15000 for 5 years at an annual effective interest rate of %9. At the end of each year…
A: Computation:
Q: As part of her retirement planning, Mrs. Smith purchases an annuity that pays 16 % compounded…
A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…
Q: Sally has a sum of $19000 that she invests at 7% compounded monthly. What equal monthly payments can…
A: Present value (P0) = $19000 Monthly interest rate (r) = 0.00583333333333333 (i.e. 0.07 / 12) Monthly…
Q: Robin wishes to accumulate a sum of $450,000 in a retirement account by the time of her retirement…
A: The value of an asset at a future date is called future value.
Q: April paid $144,000 for an annuity that would immediately pay $1,000 per month. Her life expectancy…
A: Income that is not subject to income taxes, such as municipal bonds or coupons, is referred to as…
Q: Wasim invests $220,000 in an annuity that earns 8.50% interest compounded quarterly. It makes…
A: An annuity is referred to lump-sum payment made by you in return for regular disbursements,…
Q: Mdm. Chan, a retiree, purchased an annuity product with a lump sum of $200,000. The annuity promises…
A: An annuity is the fixed payment that an investor receives from an investment or fixed deposits made…
Q: After paying for their children's college education, Amy and Randy have $15,000 in annual savings.…
A: Annual saving (A) = $15000 r = 7.5% per annum n = 15 years We need to find the future value of…
Q: Samantha receives a 10,000 life insurance benefit. If she uses the proceeds to buy an n-year…
A: Life insurance benefit = Present value of annuity immediate = 10000 For n year annuity, annual…
Q: To save money for her son's college tuition, Jane invests $104 every month in an annuity that pays…
A: Annuity is the number of payments made by a person at frequent intervals of time. Annuities are used…
Q: Ali deposits BD 2,500 in a savings account that pays interest at the rate of 5.5% per year,…
A: Given information : Deposits 2500 Interest rate 5.50% Time period (years) 14 The given…
Q: Annette has just inherited $180,000. She invests this money at a rate of return of 6.47% per year…
A: Given: Present value $180,000 Rate 6.47% Another annuity $2,851 Years 20 Compounding…
Q: Jordan purchased an annuity that had an interest rate of 4.00% compounded semi-annually. It provided…
A: In this we need to calculate effective rate and than find out present value factor and from that we…
Q: Lisa purchased an annuity that had an interest rate of 3.00% compounded semi-annually. It provided…
A: The purchase price of an annuity corresponds to current worth of annuity payments that make investor…
Suppose Brianna invests $1300 each year for 5 years, in
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
- Carla Lopez deposits $5, 200 a year into her retirement account. If these funds have an average eaning of 6 percent over the 40 years until her retirement, what will be the value of her retirement account?Delia purchases an annuity that will pay her $10,000 per year for the next 10 years starting next year. Assuming a rate of 6%, what is the value of the annuity. Choose the closest. a) $106,000 b) $131,808 c) $159,374 d) $171,569Amanda purchases a retirement annuity that will pay her $2,500 at the end of every six months for the first nine years and $700 at the end of every month for the next six years. The annuity earns interest at a rate of 4% compounded quarterly. a. What was the purchase price of the annuity? b. How much interest did Amanda receive from the annuity? Not use excel
- Michelle purchases a retirement annuity that will pay her $3,000 at the end of every six months for the first eleven years and $600 at the end of every month for the next five years. The annuity earns interest at a rate of 2.3% compounded quarterly. a. What was the purchase price of the annuity? Round to the nearest cent b. How much interest did Michelle receive from the annuity? Round to the nearest centAnnette has just inherited $180,000. She invests this money at a rate of return of 6.47% per year compounded quarterly. After some period of time, she purchases an annuity that pays $2851 at the beginning of each month for 20 years. What monthly compounded rate of interest is equivalent to 6.47% compounded quarterly?4. Mr. Thomas will receive $8,500 a year for the next 15 years from her trust. If a 7 percent interest rate is applied, what is the current value of the future payments if first receipt occurs today?
- Walter is investing $5,000in an account paying 6.75 percent annually for three years. What is the interest-on-interestif interest is compounded?Hint: Find the interest earned using compound interest and simple interest. The difference between them isyour answer.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?Kavita determines that to receive an annuity of $6900 each quarter for 5 years at 6.5% per year compounded quarterly, she must deposit $117 016.64. How much must Kavita deposit for an annuity that pays twice as much, $13 800, each quarter? a) She must deposit exactly twice as much. b) She must deposit exactly half as much. C) She must deposit more than twice as much. d) She must deposit less than half as much.
- Ali contributed $1,000 per year for the past 9 years into an RRSP account, earning 3.8% compounded annually. If he leaves the accumulated contributions for another 5 years in the RRSP at the same rate of interest, a. How much will Ali have in total in his RRSP account? b. How much did Ali contribute? c. How much will be the interest?Ginger Rogers deposits $3,000 a year into her retirement account. If these funds have an average earning of 8 percent over the 40 years until her retirement, what will be the value of her retirement account?Anna purchases a retirement annuity that will pay her $2,000 at the end of every six months for the first nine years and $200 at the end of every month for the next four years. The annuity earns interest at a rate of 3.6% compounded quarterly. a. What was the purchase price of the annuity? Round to the nearest cent b. How much interest did Anna receive from the annuity? Round to the nearest cent
