4) A person puts 200 dollar to a pension fund every month. This is invested in Eurobonds yielding %8 annual. How much will be accumulated after 20 years?

Q: Assume that the Canada Pension Plan promises you $60,000 per year starting when you retire 45 years…

A: The value of the Pension plan can be calculated using the formula of the present value of annuity .…

Q: What would you pay for an annuity of $2,000 paid every six months for 12 years if you could invest…

A: Details given in the question are : Annuity payment every six months (PMT) = $2000 Time period (n) =…

Q: ou have 5 million dollars in your 401K account. Today, annuities are earning 6% annual effective…

A: Present value refers to the current amount of an asset that will be available on some future date…

Q: What is the annual rate of return on a perpetuity that costs $500,000 and pays $2,000 monthly?

A: Following details are given in the question: Cost of perpetuity = $500000 Monthly payment (cashflow)…

Q: You want to have $1 million to use for retirement in 35 years. If you can earn 1% per month, how…

A: Future Value (FV) of amount required = $1 million or $1,000,000Monthly interest rate (r) = 1% or…

Q: You have set up a life annuity with a present value of $250,000. If your life expectancy at…

A: Using the PMT function in excel

Q: Suppose you put $ 500 a month for retirement into an annuity earning 5.25% compounded monthly. If…

A: Future value is the estimated value of current assets that is discounted at an assumed rate of…

Q: a. A pension fund has to pay out $750,000 to the retirees at the end of every month for the next 50…

A: Time value of money (TVM) refers to the method or concept which is used to determine the amount of…

Q: If your trust fund promises to pay you RM25,000 on your 24th birthday (6 years from today) and earns…

A: Promised amount (F) = RM 25000 n = 6 years r = 9%

Q: A worker saves for retirement from year 2035 to year 2056, starting with $10,000 in 2035 and…

A: Annuity is the amount that can be withdrawn from amount saved over period of time for retirement.

Q: After carefully exmaining your budget, you determine you can manage to set aside $350 per year. You…

A: Introduction: Future Value of Annuity Due: Future value: The value of an investment made today, with…

Q: Assume that the Canada Pension Plan promises you $70,000 per year starting when you retire 45 years…

A: Social security is the amount which is given by certain employers in addition to salary that gets…

Q: ou are saving for retirement in 30 years.  You contribute $5,500 a year to a pension plan for 20…

A: Annuity refers to series of equalized payments that are made either at start or end of specific…

Q: Suppose that ​$ 2,500 is set aside each year and invested in a savings account that pays ​8%…

A: The FV of an investment refers to the combined value of the cash flows of the investment at a…

Q: Suppose you put $ 525 a month for retirement into an annuity earning 5.25% compounded monthly. If…

A: An investment decision may involve regular cashflows of equal amount during successive years in…

Q: You have $50,000 in your retirement fund that is earning 5.5 percent per year, compounded quarterly.…

A: Amount present in fund = $50,000 Interest rate = 5.5% compounded quarterly

Q: 5. My pension plan is an annuity with a guaranteed return of 5% per year. (Assume compounding at…

A: a. Let’s determine the future value of payments required The Amount required in the account during…

Q: An annuity offers $1,000 for 10 years. If you can earn 12 percent annually on your funds, what is…

A: Annuity Amount = $1,000 Years(n) = 10 Interest Rate(r) = 12% Present Value of Annuity =…

Q: How much money do you need now to set up a perpetuity that pays $2,000 at the end of each quarter if…

A: In finance, there are two types of series of cash flows, i.e., an annuity, and perpetuity. An…

Q: If P30,000.00 is deposited each year for 10 years, how much annuity can a person get annually from…

A: Amount deposited each year for 10 years is P30,000 Cost of monry is 14% Total number of withdrawals…

Q: A pension fund must pay out $1 million next year, $2 million the following year, and then $3 million…

A: Solution:Duration refers to that point of time where reinvestment risk equalizes the interest rate…

Q: 5. If P50,000.00 is deposited each year for 10 years, how much annuity can a person get annually…

A: Annuity means a finite number of payments which are the same in size and made in equal intervals of…

Q: (Future value of an annuity and annuity​ payments) You are trying to plan for retirement in 12…

A: Saving Account   $       2,10,000 Stocks  $       3,50,000 Annual deposit in saving…

Q: What amount will be paid at the beginning of every month for 10 years if the present value is 20O,…

A: The payment flow which continues for a definite time period and terminates after lapse of time…

Q: You want to accumulate $500,000 in a savings account in20 years. If the bank pays 6% compounded…

A: Future value: It can be defined as the value of an investment or any asset at a specified future…

Q: What is the annual rate of return on a perpetuity that costs $500,000 and pays $1,000 monthly?

A: Following details are given in the question: Cost of perpetuity = $500000 Monthly payment (cashflow)…

Q: Suppose you are 30 years old and would like to retire at 60. Moreover, you would like to to have a…

A: Using excel PMT function

Q: Suppose you put $ 450 a month for retirement into an annuity earning 4.25% compounded monthly. If…

A: Future value can be referred to as the value of an underlying asset or security at a future date.…

Q: ssume that the Canada Pension s you per year ting when you retire 45 yea st $20,000 will come 45…

A: Present value of the future payments is value for the annuity and that is based on the timing and…

Q: How much money is needed now to establish a perpetuity that pays $2,000 at the end of every quarter…

A: given information   perpetuity that pays at the end of every quarter = $2000 interest rate = 2.5% =…

Q: PART C.) In planning for your retirement, you expect to save $5,000 in year 1, $6,000 in year 2, and…

A: A concept that implies the future worth of the money is lower than its current value due to several…

Q: you started making sinking fund deposit of 20000 today. its bank pays 6% compounded semi-annually…

A: Solution Given Present deposit 20000 Rate of interest 6% compounded semiannually…

Q: You are planning for a very early retirement. You would like to retire at age 40 and have enough…

A: In order to determine the Amount of Investment that a person needs to make each year for 10 years…

Q: You are offered an annuity that will pay $10,000 a year for ten years (that is, ten payments), but…

A:

Q: How much will you have in accumulated savings 20 years from now if you deposit $2,000 at the end of…

A: Period = 20 Years Year end deposit = $ 2000 Growth rate = 2% Interest rate = 5%