A new employee plans to receive 760,000 TL individual retirement bonus when he retires. According to the forecast that this person will retire after 30 years, premium payments will be made at the end of each year and a compound interest rate of 14% will be applied each year; a) What is the premium amount to be deposited at the end of each year b) Draw the cash flow diagram for the transactions. c) Calculate the present value of the 760,000 TL bonus that this person will receive when she retires.

A new employee plans to receive 760,000 TL individual retirement bonus when he retires. According to the forecast that this person will retire after 30 years, premium payments will be made at the end of each year and a compound interest rate of 14% will be applied each year; a) What is the premium amount to be deposited at the end of each year b) Draw the cash flow diagram for the transactions. c) Calculate the present value of the 760,000 TL bonus that this person will receive when she retires.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 44P

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A new employee plans to receive 760,000 TL individual retirement bonus when he retires. According to the forecast that this person will retire after 30 years, premium payments will be made at the end of each year and a compound interest rate of 14% will be applied each year; a) What is the premium amount to be deposited at the end of each year b) Draw the cash flow diagram for the transactions. (10 puan). c) Calculate the present value of the 760,000 TL bonus that this person will receive when she retires.
A retirement plan investment guarantees to pay you, or your estate, a fixed amount each year for 20 years. At the time of retirement, you will have accumulated $310,360 to your credit in the plan. The plan anticipates earning 8% interest annually over the period you or your estate will receive the retirement benefits. Rounding to the nearest $10, how much will the annual retirement benefits payment be assuming the first payment occurs one year from your retirement date?
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