As part of her retirement planning, Mrs. Smith purchases an annuity that pays 16 % compounded quarterly . If the quarterly payment is $7500 , how much will Mrs. Smith have saved in 8 years?
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- For her daughter's university education, Carla Hackl has invested an inheritance in fund paying 9.2% compounded quarterly. If ordinary annuity payments of $4750.00 per month are to be made out of the fund for 5 years and the annuity begins 7.75 years from now, how much was the inheritance? Blank # 1 Blank # 2fran purchased an annuity that provides 6200 quarterly payments foe the next 10 years. The annuity was purchased at a cost of 186000 How much of tghe first quarterly payment will fran include in her gross payment4. Mr. Thomas will receive $8,500 a year for the next 15 years from her trust. If a 7 percent interest rate is applied, what is the current value of the future payments if first receipt occurs today?
- Your friend has a trust fund that will pay her the following amounts at the given interest rate for the given number of years. Calculate the current (present) value of your friend’s trust fund payments. (Click here to see present value and future value tables) Amount ofYearly Receipt Rate Time Current Value $5,800 8% 5 years $fill in the blank 1 $11,700 12% 10 years $fill in the blank 2 $18,000 10% 16 years $fill in the blank 3 $23,000 15% 20 years $fill in the blank 4Suppose Brianna invests $1300 each year for 5 years, in annuity that pays 6% annual interest, compounded annually. What percentage of the balance, after 5 years, is Brianna's contributions?For her daughter's university education, Carla Hackl has invested an inheritance in a fund paying 9.2% compounded quarterly. If ordinary annuity payments of $4750.00 per month are to be made out of the fund for 5 years and the annuity begins 7.75 years from now, how much was the inheritance
- Janet receives a $ 10,000 life insurance benefit. If she uses the proceeds to buy an n-year annuity immediate, the annual payout will be 1534.86. If a 2n-year annuity due is purchased, the annual payout will be 994.13. Both calculations are based on an effective annual interest rate of i. Calculate i.Your grandparents would like to establish a trust fund that will pay you and your heirs $120,000 per year forever withthe first payment one year from today. If the trust fund earns an annual return of 2.3 percent, how much must yourgrandparents deposit today?Multiple Choicea. $5.217.391.30B. $4,347,826.09 C. $4,816,053.51D. $4,565,217.39E. $5.962.732.92Paola purchases a 10 year annuity immediate with an annual effective rate of interest of 7.0718% and annual payments of 10x. Kurt purchases a 10 year decreasing annuity immediate with annual payments and an effective rate of interest of 7.0718%. His first payment is $50 and subsequent payments are reduced by an amount equal to X. Both annuities have the same present value. Calculate X.
- Mr. Said purchases an ordinary annuity paying 6 % quarterly for 8 years. Find the future value of the annuity if the payment is OMR 2928. 359641.97 119135.31 220203.26 28979.79 59019.35Christina 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?Anne purchased an annuity from an insurance company that promised to pay her $17,000 per year for the next 10 years. Anne paid $130,050 for the annuity, and in exchange she will receive $170,000 over the term of the annuity. Required: a. How much of the first $17,000 payment should Anne include in gross income? Note: Do not round intermediate calculations. b. How much income will Anne recognize over the term of the annuity?