You just paid $351, 000 for a policy that will pay you and your heirs $12, 300 a year forever. What rate of return are you earning on this policy?
Q: Your uncle is about to retire, and he wants to buy an annuity that will provide him with $75,000 of…
A: The cost to buy an annuity today is calculated by discounting the annuity values with the present…
Q: You just received $333,000 from an insurance settlement. You have decided to set this money aside…
A: given, pv =$333,000 n= 27 years n= 8.99%
Q: suppose you want to make sure you have 2,000,000 when you retire in 35 years. what even annual…
A: We need to use future value of ordinary annuity formula to calculate the annual payment. The formula…
Q: You just had your 30th birthday and you are planning for your retirement at age 66. You currently…
A: Using excel RATE function Where NPER = no. of the compounding period PV = Present Value FV = Future…
Q: You just turned 30 and want to retire in 35 years with $1,500,000. Assuming you can get a rate of…
A: Here, To Find: Monthly deposits =?
Q: Your father is about to retire, and he wants to buy an annuity that will provide him with $85,000 of…
A: Present Value: The present value is the value of cash flow stream or the fixed lump sum amount at…
Q: You have just celebrated your birthday. Your uncle, has set up a trust fund for you, which will pay…
A: Present value: It can be defined as today’s worth of an investment that will be received in the…
Q: If you put $10,000 into an investment to fund your child's college education in 18 years, how much…
A: Generally, investment is done by individuals order to have sufficient money available for future…
Q: Peter has opened a retirement investment account and plan to contribute $6,000 at the end of each…
A: Expected return is calculated by excel function RATE. For RATE function, future value FV is the…
Q: st inherited some money, and a broker offers to sell you an annuity that pays $16,800 at the end of…
A: Value of annuity is present value of all year end money received over the period of life.
Q: You are willing to pay $31,250 now to purchase a perpetuity that will pay you and your heirs $2,500…
A: Perpetuity refers to the future cash flow that occurs forever.
Q: Donald will receive $450,000 from his trust fund in 20 years from today. He assumes he could get a…
A:
Q: Your client has great news. His son was born last week. He wants to set aside $50,000 today to cover…
A: Future Value = Present Value ( 1 + i )n Note: Assuming that interest on his investment will be…
Q: Ronald has an investment opportunity that promises to pay him $55,000 in three years. He could earn…
A: Present value = Future value * Present value of $1 table factor
Q: Your uncle is about to retire, and he wants to buy an annuity that will provide him with $7,000 of…
A: Annual income (C) = $ 7000 Number of annual payments (n) = 21 Annual interest rate (r) = 5.25%
Q: 4. You wish to purchase a house that costs $294,000, and the bank requires you to have 12% of the…
A: A down payment is an early stage payment made for a particular good purchased through financing.
Q: Karen and Dave are planning to retire today. They would like to receive $50,000 per year in today's…
A: Dear student, as per Bartleby answering guideline we can not answer more than 1 question if students…
Q: You want to retire in 30 years with $2,500,000 in your retirement account, how much do you need to…
A: Future value required (FV) = $ 2,500,000 Interest rate (r) = 8% Number of annual payments (n) = 30
Q: Your parents will retire in 18 years. They currently have $250,000, and they think they will need $1…
A: The future value of the cash flow is the current worth of a cash flow at a certain rate of interest…
Q: You just inherited $10,000. While you plan to squander some of it away, how much should you deposit…
A: The investments or savings in the account are made with an expectation of increment in its value in…
Q: You deposit OR 17,000 each year for 10 years at 7%. Then you earn 9% after that. If you leave the…
A: A study that proves that the future worth of the money is lower than its current value due to…
Q: You just paid $750,000 for an annuity that will pay you and your heirs $36,000 a year forever. What…
A: Formula: Rate of return = Annuity / Current amount
Q: Cury's Life Insurance Co. is trying to sell you an investment policy that will pay you and your…
A: In this problem we need to calculate the amount we need to pay for the policy. Investment policy pay…
Q: Your client wants to retire in 20 years. He has nothing saved. He wants to know the monthly savings…
A: Using excel PMT function
Q: You have just inherited $408,031. You plan to save this money and continue to live off the money…
A: Future Value: It is the tool used by companies, investors, or individuals for the computation of the…
Q: Your uncle has $375,000 and wants to retire. He expects to live for another 25 years, and he also…
A: The mathematical equation is:
Q: You have just inherited $100,000 as a lump-sum amount from your distant aunt. After depositing the…
A: In order to find the number of years taken to withdraw the amount one can use excel and in excel…
Q: You plan on retiring in 30 years. You currently have $200,000 and think you will need $1,000,000 to…
A: In the given problem we require to calculate the annual return that will make $200000 to $1000000 in…
Q: You'd like to have $1,000,000 saved in 35 years so that you can retire a little bit early. If you…
A:
Q: Your parents will retire in 19 years. They currentlyhave $350,000 saved, and they think they will…
A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…
Q: suppose you are planning to buy a home in 8 years from now that costs you 47114 OMR, How much should…
A: Following is the answer to the given question
Q: How much do you need to save each year for 30 years in order to have $775,000, assuming you are…
A: Given information: Future value amount is $775,000 Interest rate is 8% Number of years is 30
Q: How much should you invest each quarter if you can earn a rate of 4.8% compounded quarterly? How…
A: To find the payment per quarter one can use “ pmt function “ in excel. To find the total money we…
Q: Your aunt is about to retire, and she wants to sell some of her stock and buy an annuity that will…
A: Present value of annuity refer to the concept of estimating the desired sum of money requires to…
Q: Donald Johnson has just given an insurance company $20,000. In return, he will receive an annuity of…
A: The present value is the value of the sum received at time 0 or the current period. It is the value…
Q: Can you help me work out this problem in detail? Ben wants to receive $6,000 a year for 10 years.…
A:
Q: An individual who makes $32,000 per year anticipates retiring in 30 years. If his salary is…
A: Future Value is the value of current investments at a certain future date at the assumed…
Q: you want to have $10,000 in 5 years and can earn 3.2% annually. How much must you deposit today to…
A: Given Information Future Value =$10,000 Time Period = 5 years Interest rate = 3.2% annually
Q: You have just retired with savings of $5 million. If you expect to live for 49 years and to earn 12%…
A: Present value = Annuity * PVAF ( Rate, Years )
Q: You purchased a house for 850,000 cash 4 years ago. You can sell it today for 980,000. What rate of…
A: Rate of return is the percentage of income earned from an investment.
Q: Your favorite uncle wants to give each of his favorite nieces and nephews $30,000 now while he is…
A: Future Value: The future value is the amount that will be received at the end of a certain period.…
Q: Carlo Aldric wants to have P40,000 per year for 15 years during his retirement. What amount would…
A: Annual amount (P) = 40,000 Interest rate (r) = 5% Period (n) = 15 Years
Q: You just inherited some money, and a broker offers to sell you an annuity that pays $5,000 at the…
A: Annuity means where regular payment is made at the end of regular period and full amount with…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- You would like to provide $145,000 a year forever for your heirs. How much money must you deposit today to fund this goal if you can earn a guaranteed 5.8 percent rate of return?You've just invested $770,000 into Far Far Away Investments. This company promises to pay you and later all your future heirs a fixed amount of money once a year forever. The company earns a 5.7% annual return. How much should you expect you and all your future heirs to receive annually?You believe you will need to have saved $593,000 by the time you retire in 30 years in order to live comfortably. You also believe that you will inherit $113,000 in 5 years. 1) If the interest rate is 7% per year, what is the future value of your inheritance at retirement? 2) How much additional money must you save to meet your retirement goal, assuming you save your entire inheritance?
- You believe you will need to have saved $480,000 by the time you retire in 30 years in order to live comfortably. You also believe that you will inherit $115,000 in 5 years. a) If the interest rate is 6% per year, what is the future value of your inheritance at retirement? b) How much additional money must you save to meet your retirement goal, assuming you save your entire inheritance?Assume that you just inherited an annuity that will pay you $10,000 per year for10 years, with the first payment being made today. A friend of your mother offersto give you $60,000 for the annuity. If you sell it, what rate of return would yourmother’s friend earn on his investment? If you think a “fair” return would be 6%, howmuch should you ask for the annuity? (13.70%, $78,016.92)If you receive an inheritance of $10,000 today, how long do you have to invest it at 8% per year to be able to withdraw $2000 every year forever? Assume the 8% per year is a return that you can depend on forever.
- You purchased a house for 850,000 cash 4 years ago. You can sell it today for 980,000. What rate of return did you earn on this investement? Round your answer to the nearest tenth of a percent.Assume that you own an annuity that will pay you $15,000 per year for 12 years, with the first payment being made today. You need money today to start a new business, and your uncle offers to give you $160,000 for the annuity. If you sell it, what rate of return would your uncle earn on his investment? O 2.28% O 2.20% O 2.22% 2.33% 2.59%Assume that you just inherited an annuity that will pay you $10,000 per year for 10 years, with the first payment being made today. A friend of your mother offers to give you $60,000 for the annuity. If you sell it, what rate of return would your mother’s friend earn on his investment? If you think a “fair” return would be 6%, how much should you ask for the annuity? What keys do I need to enter in a financial calculator to get the answers of (13.70%, $78,016.92)/ only show me the keys to enter in a financial calculaotr. not excel and not algebra
- You just received $333,000 from an insurance settlement. You have decided to set this money aside and invest it for your retirement. Currently, your goal is to retire 27 years from today. How much more will you have in your account on the day you retire if you can earn an average return of 10.59 percent rather than just 8.99 percent?You just inherited some money, and a broker offers to sell you an annuity that pays $5,000 at the end of each year for 20 years. You could earn 5% on your money in other investments with equal risk. What is the most you should pay for the annuity?You just inherited some money, and you decide to put $70,000 in an account that pays 3.25% interest, which you will use to establish an annuity that will pay for your vacations for the next ten years. How much can you withdraw from the account in each of the ten years? $8,044.56 $7,826.10 $6,241.51 $8,311.18