Ava enjoys investing in annuity that will pay her $5,000 at the end of each month for 5 years after she retires. The interest is 12% per year. Calculate the present value of the annuity. Provide a complete amortization table
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A: Using formulae, Future Value =Present Value * (1+rate)^n Where n = no. of years till end
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A: Formula:
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A: Future value represents the future worth of existing cash flows. It is determined by compounding…
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A: Future value is::$200000.. Contribution annually.. Rate of Interest is:::4%.... Required Deposit…
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A: The present value of a growing annuity is the present worth of a series of cash flows growing at a…
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A: The present value of cash flows presents the discounting value of future cash flows that arises in…
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A: The future value of ordinary annuity is the group of instalment payment of fixed amount at a certain…
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A: Here,
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A: The future value is the amount that will be received at the end of a certain period. In simple…
Q: our friend is celebrating her 30th birthday today and wants to start saving for her anticipated…
A: The question can be solved in excel as follows:
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A: Here, Jennifer is depositing $300 monthly in an account at a rate of 6% per year for a period of 35…
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A: Given: Present value = $300,000 Interest rate = 4.55% Year = 15 Interest compounded = Quarterly
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A: Future value It is a value that a person will receive in the future on an investment that is done…
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A: Annuity is referred as the instalment paid at the regular interval for a particular period. The…
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A: Using excel PV function
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A: In order to find how much money she will have one has to calculate the future value after 20 years.
Q: Suppose your friend is celebrating her 35th birthday today and wants to start saving for her…
A: Future Value: The future value is the amount that will be received at the end of a certain period.…
Q: Theresa figures she needs $200,000 in ten years to pull off an early retirement to an undisclosed…
A: The future value of the annuity is the total value of all the payments which is occurred regularly…
Q: Suzette is receiving $10,000 today, $15,000 one year from today, and $25,000 four years from today.…
A: GIVEN, PV0= $10,000 PV1= $15,000 PV4= $25,000 R= 9.6% N = 30
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A: Here, To Find: Future value of annual savings (FV) =? Annual withdrawals made for 20 years after…
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A: The present value of annuity refers to the current value of the future payments from the payment…
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A: A pension plan is a kind of retirement account that is being created by an individual who seeks…
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A: Salary = $160,000 Percentage in the retirement plan = 9% Growth rate = 5% Time period = 16 years…
Q: Your friend is celebrating her 30th birthday today and wants to start saving for her anticipated…
A: Annual deposit refers to the amount that is deposited or invested each year at given interest rate…
Q: Sara decides to set up a retirement fund by depositing $24 at the end of each day for 13 years. How…
A: Let's begin by calculating Effective Interest rate Formual for Effective Interest Rate = (1 +…
Q: Jamie wants to have $800,000 for her retirement in 25 years. How much should she save annually if…
A: The present value is the value of the sum received at time 0 or the current period. It is the value…
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A: We need to use the concept of time value of money to solve the question. According to the concept of…
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A: Retirement means quite simple end of a phase of working for a time of years.This span of retirement…
Q: Ashley invests $250 a month in her 401(k) retirement account, which earns an 8 percent annual…
A: Monthly payment (P) = $ 250 Annual interest rate = 8% Monthly interest rate (R) = 8%/12 = 0.6667%…
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A: Introduction: This question has to be solved in two parts, one through finding the future value of…
Q: Maryann is planning a wedding anniversary gift of a trip to Hawaii for her husband at the end of 3…
A: Annuity means series of finite no. of payments which are same in size and made in equal intervals…
Q: Amy Johnson wants to retire on $75,000 per year for her life expectancy of 20 years after she…
A: The cash flows discussed here are annuities where an equal amount is paid each period.
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A: Monthly Annuity Payments = 7500 Time Period = 20 years * 12 = 240 months Interest % = 5%/12 End of…
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A: Future Value: It is the future worth of the investment or cashflows at a future point in time,…
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A: The present value of the annuity is the current worth of a cash flow series at a certain rate of…
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A: The amount of the annual annuity payment can be calculated using the below excel formula:
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A: given, Earl: A=$2000 r=7% n = 10 years then kept the amount idle for 35 years Ivana: A=$2000 r=7%…
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- To help out with her retirement savings, Rachel invests in an ordinary annuity that earns 7.8% interest, compounded annually. Payments will be made at end of each year. How much money does she need to pay into the annuity each year for the annuity to have a total value of $98.000 after 17 years? Do not round intermediate computations, and round your final answer to the nearest cent. If necessary, refer to the list of financial formulas.To help out with her retirement savings, Linda invests in an ordinary annuity that earns 6.6% interest, compounded annually. Payments will be made at the end of each year. Continue How much money does she need to pay into the annuity each year for the annuity to have a total value of $97,000 after 17 years? Do not round intermediate computations, and round your final answer to the nearest cent. If necessary, refer to the list of financial formulas. 50°F Mostly cloudy Es O 2 2 W 0 3 E 4 X R O S F6 % 5 € T Y F8 & 7 a 7 U 27 D * 00 Submit Assignmen 2022 McGraw Hill LLC. All Rights Reserved. Terms of Use | Privacy Center | Accessibility F10 D X I 9 2 F11 PDF F12 NumLk Prt Sc ^ Pause Br +Delia purchases an annuity that will pay her $10,000 per year for the next 10 years starting next year. Assuming a rate of 6%, what is the value of the annuity. Choose the closest. a) $106,000 b) $131,808 c) $159,374 d) $171,569
- Six years ago, Gladys opened a retirement account with an initial deposit of $14,000. Each year since then, she has added $2,000 to the account at the end of each year. She plans on contributing for the next 25 years. How would you determine the future value of her account at retirement? O Future value of a lump sum and future value of an annuity. O Future value of an annuity and the present value of a lump sum. O Future value of a lump sum and present value of an annuity. O Future value of an annuity.Ginger Rogers deposits $3,000 a year into her retirement account. If these funds have an average earning of 8 percent over the 40 years until her retirement, what will be the value of her retirement account?Sehar has accumulated $245,000 in her retirement savings plan. When she retires in exactly 4 years from today, she will purchase an annuity that will provide end-of-month payments for 20 years. If her funds earn 6% compounded quarterly during both the period of deferral and the annuity period, how much will her Sehar’s monthly payments be during retirement?
- Aylene is preparing for an income fund for her retirement. She wants to receive 15,000 pesos quarterly for the next 25 years starting 1 month from now. The income fund pays 10.5% compounded monthly. How much Aylene deposit now to pay for the annuity?To help out with her retirement savings, Kaitlin invests in an ordinary annuity that earns 4.8% interest, compounded monthly. Payments will be made at the end of each month. How much money does she need to pay into the annuity each month for the annuity to have a total value of $97,000 after 18 years?Aylene is preparing for an income fund for her retirement. She wants to receive 15,000 pesos quarterly for the next 25 years starting 1 month from now. The income fund pays 10.5% compounded monthly. How much Aylene deposit now to pay for the annuity? (Show solution)
- Sheila is planning to retire in 9 years. For 9 years, at the end of each year Sheila plans to invest $6,000 in an ordinary annuity at 7% interest compounded annually. At the end of year 9, what will be the final value of Sheila's investment?Una Day is planning to retire in 14 years, at which time she hopes to have accumulated enough money to receive an annuity of $17,000 a year for 19 years of retirement. During her pre-retirement period she expects to earn 8 percent annually, while during retirement she expects to earn 10 percent annually on her money. What annual contributions to this retirement fund are required for Una to achieve her objective and sleep well at night? (Use a Financial calculator to arrive at the answer. Do not round intermediate calculations. Round the final answer to the nearest whole dollar.) Annual contribution $ 7,422 xMargaret has $650 000 in her RRSP and wishes to retire.She is thinking of using the funds to purchase an annuity that earn 5% compounded annually and pays her $3 700 at the end of each month.If she buys the annuity for how long in years and months will she receive the payments?
