Jaskier wishes to have a provision in her will that $2,150 will be paid annually in perpetuity to Need a Feed. How much must she provide in her will for this perpetuity if the interest rate is 5.50% per annum? (round to 2 dp) a. None of the options b. $34, 677.42 c. $39,090.91 d. $40,186.92 e. $ 48,314.61
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- Mr. Bearer may choose to take a lump-sum payment of $25,292.8 now from his insurance policy or an annuity of $3,200 annually as long as he lives. How long must Mr. Bearer anticipate living for the annuity to be indifferent to the lump sum if interest rate is 8%? a. 13 years b.15 years c. 11 years d. 9 years1. Louisa is 72 years old. She purchased an annuity in January of 2021 that will pay her $1,500 per month for the rest of her life. Louisa paid $200,000 for the annuity. What is the expected value of Louisa’s annuity? a. $18,000 b. $21,900 c. $200,000 d. $262,800 e. Not able to be determined from this informationChristina will receive a 5-year annuity of $1,200 a year, with the first payment occurring at Date 4. What is the value of this annuity to her today at a discount rate of 7.25 percent? A. $4,111.08 B. $4,209.19 C. $4.774.04 D. $3,961.80 E. $4,887.48 The answer given is E, however, mine is D. Could you help me to explain this question?
- 9. Implied interest rate and period Consider the case of the following annuities, and the need to compute either their expected rate of return or duration. Joshua inherited an annuity worth $6,830.77 from his uncle. The annuity will pay him eight equal payments of $1,100 at the end of each year. The annuity fund is offering a return of Joshua's friend, willie, has hired a financial planner for advice on retirement. Considering Willie's current expenses and expected future lifestyle changes, the financial planner has stated that once Willie crosses a threshold of $1,387,311 in savings, he will have enough money for retirement. Willie has nothing saved for his retirement yet, so he plans to start depositing $25,000 in a retirement fund at a fixed rate of 6.00% at the end of each year. It will take v for Willie to reach his retirement goal.MENU = a. Your grandmother left you an inheritance in the form of a trust. The trust agreement states that you are to receive R2 500 on the first day of each year, starting immediately and continuing for fifty years. What is the value of this inheritance today if the applicable discount rate is 6,20%? O b. III d. R66 811,30 R40 706,92 O C.R39 942,42 myExams R49 942,42Lily Bobtail wishes to leave a provision in her will that $2 000 will be paid annually in perpetuity to a local charity. How much must she provide in her will for this perpetuity if the interest rate is 6% per annum? a. $33,333.33 b. $50,000 c. $40,000 d. $66,666.67
- please use ba II where possible Drew receives an inheritance that pays him $53,000 every three months for the next two years. Which of the following is closest to the present value (PV) of this inheritance if the interest rate is 8.3% (EAR)? A. $310,421 B. $388,027 C. $465,632 D. $424,000Annalise will deposit into her investment account $4,500, $1,000, and $5,500 at the end of Years 1, 2, and 3, respectively. What will her account be worth at the end of the Year 3 if she earns an annual rate of 6.15 percent? O $11,632.02 O $10,381.25 O $9,725.12 O $11,526.50 None of these answers are correctSarah will receive a perpetual annul income of $50,000 on her retirement, commencing in 3 years time. If the interest rate is 8% per annum, how much is this worth as a single sum today? Group of answer choices 535,837 675,236 550,655 223,000
- Sara wants to have $530,000 in her savings account when she retires. How much must she put in the account now, if the account pays a fixed interest rate of 9%, to ensure that she has $530,000 in 18 years time? OA. $112,357 OB. $202,243 OC. $119,492 O D. $157,3009. Implied interest rate and period Consider the case of the following annuities, and the need to compute either their expected rate of return or duration. A. Anthony inherited an annuity worth $3,811.62 from his uncle. The annuity will pay him four equal payments of $1,100 at the end of each year. The annuity fund is offering a return of . B. Anthony’s friend, Jack, wants to go to business school. While his father will share some of the expenses, Jack still needs to put in the rest on his own. But Jack has no money saved for it yet. According to his calculations, it will cost him $32,406 to complete the business program, including tuition, cost of living, and other expenses. He has decided to deposit $4,200 at the end of every year in a mutual fund, from which he expects to earn a fixed 10% rate of return. It will take approximately for Jack to save enough money to go to business school.The executor of your father's Will has offered you the following options' i. GH¢ 50 million now ii. GH¢ 120 million in 8 years time iii. GH¢ 10 million at the end of each year for the next 8 years iv. GH¢ 5 million forever v. GH¢ 10 million at the beginning of each year for the next 8 years. If the existing discount rate is 10% which of the options will you accept.