ally into a life insurance fund for the next 5 years, at which time he plans to retire. Instead of a lump sum, Jim wishes to receive annuities for the next 20 years. What is the annual payment he expects to receive beginning the year he retires if he assumes an interest rate of 8.8 percent for the whole time period? (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16)

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A: Payment = p = $2800Time = t = 30 yearsRate of return = r = 8%

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A: Present value is computed as follows: = Future value / (1 + r)n Here, r = rate of interest n = time…

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A: Annuity grow by some constant amount of gradient and due to this growth amount grow much amount.

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A: first calculate the amount needed when he retires FV = 0 PMT = 32000 N = 17 rate = 7% use PV…

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A: Use the formula for present value of an annuity to calculate the monthly deposit required: PV = PMT…

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A: An annuity seems to be a financial instrument that pays out fixed amounts of money at regular…

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A: Present value factor = 1/(1+r)^nr= Interest raten = Number of years.Annuity payment = Contribution /…

Q: am. 115.

A: Total assets = $12.1 millionInterest on debt = 11%Par value of stock = $10New assets expansion =…

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

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A: Time Value of Money :— According to this concept, value of money in present day is greater than the…

Q: Magnus wishes to have $1,500,00 when he retires in 44 years. What are the monthly payments he must…

A: Future value of annuity = P * [ (1+r)^n  - 1 ] /r  Where, Future value of annuity = 150000 n = 44 r…

Q: Geoff has paid $19,000 for a retirement annuity from which he will receive $1,624 at the end of…

A: Future value The value of an investment in a particular future date is known as its future value.…

Q: I understand the awnser to this question is B but can you explain in detail why it is B. You inherit…

A: Today money=$300000Interest rate=r=7%Period=20 yearsHow can withdraw annually.

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A: in this problem we have to calculate present value FACTOR and present value of retirement income and…

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A: Future value of Annuity cash flows = A x [(1+i)^t -1] / iwhereA = Periodic cash flow = $2,500 per…

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A: Here,

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A: The FV of an investment refers to the cumulative worth of the investment's cash flows at a future…

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A: Using excel FV function

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A: Given: Future value of annuity = $71,000 Interest = 2.4%

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A: Present value= Annual cash flows / Discounting rate= 96666.666666666666667= 96666.67 Approx

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A: Solution:- Every rational person wants to pay fewer amounts. So, the better option will be the one…

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