A personal account earmarked as a retirement supplement contains $292,200. Suppose $250,000 is used to establish an annuity that earns 4%, compounded quarterly, and pays $4500 at the end of each quarter. How long will it be until the account balance is $0?

Q: A personal account earmarked as a retirement supplement contains $292,400. Suppose $250,000 is used…

A: Annuity refers to the series of payment in equal interval of time for certain time period.  For…

Q: Find the value of the annuity at the end of the indicated number of years. Assume that the interest…

A: Amount of deposit(m): $800 Frequency(n): annually Rate(r): 1% Time(t): 30 years

Q: If you make quarterly deposits of $415.00 into an ordinary annuity earning an annual interest rate…

A: Future value of an annuity depends on the regular payments and interest rate applicable on the…

Q: You would like to have $8,000.00 in 15 years for a special vacation following graduation by making…

A: Using the PMT function in excel

Q: You make $9,300 annual deposits into a retirement account that pays an APR of 9.9 percent compounded…

A: The FV of an account refers to the cumulative value of cash flows at a fixed future date assuming…

Q: What is the difference in present value between a perpetuity that pays $500 per year and an ordinary…

A: Annual payment (A) = $500 n = 23 years for ordinary annuity r = 7%

Q: Find the periodic withdrawals PMT for the given annuity account. (Assume end-of-period withdrawals…

A: Given: Future value = $400,000 Interest rate = 6% Years = 18

Q: An ordinary annuity paying P1,811 at the end of each year for 15 years, is to be converted to an…

A: given, ordinary annuity: A=p 1811 n =15 r=10%

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

A: Perpetuity annuity involves sequence of infinite cash flows which do not have any end period. It is…

Q: If you make monthly deposits of $497.00 into an ordinary annuity earning 3.09% compounded monthly,…

A: An annuity is a series of equivalent periodic cash flows for a specific duration. In the case of an…

Q: Suppose Jorge Otero has set up an annuity due with a certain credit union. At the beginning of each…

A: Compound = monthly = 12 Payment = p = $140 Interest rate = r = 6 / 12 = 0.5% Time = t = 15 months

Q: A personal account earmarked as a retirement supplement contains $242,300. Suppose $200,000 is used…

A: The interest rate is 6%, compounded quarterly. The interest rate per quarter will be (6%/4) = 1.5%.…

Q: What is the value (in $) of Jorge's account after 16 months? (Round your answer to the nearest…

A: Information Provided: payment made = $150 Term = 16 months Interest rate = 6% compounded monthly

Q: If 5 deposits of $600 each are made into an account at the end of years 9, 10, 11, 12, and 13, what…

A: Deposit in year 9,10,11,12 and 13 = $ 600 Future value period = Year 25 Annual interest rate = 12%

Q: (2) A thirty-year annuity has end-of-month payments. The first year the payments are each $120. In…

A: Present value (PV) is a financial concept that represents the current value of a sum of money or a…

Q: Recently, More Money 4U offered an annuity that pays 6.9% compounded monthly. If $1,060 is deposited…

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

Q: Find the amount accumulated FV in the given annuity account. (Assume end - of - period deposits and…

A: Future value of annuity refers to the total value of a series of equal payments made at regular…

Q: A deposit is made every half-year into a savings account paying 3% interest compounded semiannually.…

A: Annual interest rate (r): 3%, or 0.03 as a decimal.Compounding periods per year (n): 2 (semiannual…

Q: A company wants to have $50,000 at the beginning of each 6-month period for the next 4 1/2 years. If…

A: Annuity is the regular payment to be made for specific number of years. There are two types of…

Q: Recently, More Money 4U offered an annuity that pays 6.9% compounded monthly. If $1,038 is deposited…

A: Monthly deposit (C) = $1,038 Monthly interest rate (r) = 0.00575 (i.e. 0.069 / 12) Monthly period…

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: Use Table 12-1 to solve. Suppose Jorge Otero has set up an annuity due with a certain credit union.…

A: Calculation of Jorge's account after 18 months: =$150 X value given in table (6% compounded monthly…

Q: to withdraw from the account each month. Find the number of withdrawals under each of the following…

A: Ordinary Annuity: It represents a series of annuity payments made at the end of each period.…

Q: Find the periodic withdrawals PMT for the given annuity account. (Assume end-of-period withdrawals…

A: PMT refers to payment per period. It is inflow or outflow occurs after a particular time period.

Q: Recently, More Money 4U offered an annuity that pays 5.1% compounded monthly. If $1,706 is deposited…

A: Monthly deposit (C) = $1,706 Monthly interest rate (r) = 0.00425 (i.e. 0.051 / 12) Monthly period…

Q: Find the periodic withdrawals PMT for the given annuity account. (Assume end-of-period withdrawals…

A: GIVEN, PV= $300,000 R=6% N=11 M=12

Q: (a) Find the present value of the annuity if it makes ten payments. Present value of annuity = $|…

A: This is related to annuity and hence we can solve the same using the formulas applicable to…

Q: A retirement account has $260,000.00 that will be used to start an annuity that earns 4.1%,…

A: Please see the next step for the solution

Q: Find the periodic withdrawals PMT for the given annuity account. (Assume end-of-period withdrawals…

A: PMTIt is the minimum value that is required to pay every period constantly by a person.

Mortgages

A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.

Mortgage

The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.