en you retire at 65 you can take either $500,000 in cash or an ordinary annuity that promises to pay $47.,488.98 per year for as long as you live. How long must you remain ong the living for the annuity to be a better deal, if the rate of interest is constant at 8% per year? over 25 years 17 years 18 years

Q: Lesson: Present Value of Ordinary Annuity A man has just taken retirement at age 50. He will…

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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Q: You wish to retire 40 years from now. You want OMR 50,000 per year once you retire with the first…

A: The present value function or concept can be used to determine the present value of a future sum or…

Q: Sammie Jo wants to begin saving for her retirement in 35 years. She researched and found an annuity…

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Q: You would like to save $250,000for retirement. If you are planning to retire 30 years from now, how…

A: The monthly deposit is the amount that is paid every month until the maturity of the period.

Q: Your pension plan is an annuity with a guaranteed return of 4% per year (compounded quarterly). You…

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Q: An individual wants to retire in 25 years and requires $300,000 in savings at that time. The…

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Q: Assume that you contribute $150 per month to a retirement plan for 20 years. Then you can increase…

A: Future value refers to the value an investment or cash flow is expected to grow to at a specific…

Q: 110 Derek will deposit $7,257.00 per year for 30.00 years into an account that earns 15.00%, The…

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Q: What are the monthly payments you will receive if your retirement nest egg of $ 1,000,000 is in a 5%…

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Q: You want to retire exactly 35 years from today with $2,080,000 in your retirement account. If you…

A: An annuity refers to a series of equal cash flows received or paid at regular intervals for a…

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A: The time value principle in finance states a sum of money may have different purchasing powers in…

Q: Suppose you plan to retire in 40 years.  If you make annual contributions of $13,000 into your…

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A: Future value of annuity Annuity is a series of equal payment at equal interval over a specified…

Q: If you deposit $20,000 per year for 18 years (each deposit is made at the beginning of each year) in…

A:

Q: 5. My pension plan is an annuity with a guaranteed return of 5% per year. (Assume compounding at…

A: a. Let’s determine the future value of payments required The Amount required in the account during…

Q: If you desire to have $80,000 for a down payment for a house in 7 years, what amount would you need…

A: Note:  We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

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Q: You plan to make your first $6,470 contribution to your individual retirement account in 2 years.…

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Q: If you have $325,000 saved for retirement, how many years will it last if you earn an annual…

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Q: our father is about to retire, and he wants to buy an annuity that will provide him with $93,000 of…

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Q: Your father is about to retire, and he wants to buy an annuity that will provide him with $52,000 of…

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A: We will have to use the concept of time value of money to solve this.

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Q: A person wants to establish an annuity for retirement purposes. He wants to make quarterly deposits…

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Q: What annual contributions to the retirement fund will allow you to receive the $18,000 annuity?

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Q: Assume that you contribute $300 per month to a retirement plan for 15 years. Then you are able to…

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Q: The Flemings will need $80,000 annually for 20 years during their retirement. How much will they…

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Q: how much interest will i earn on $200 deposited in an account that pays 5.75% interest annually if i…

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Q: Jane wants to retire with $2,000,000 in her retirement account exactly 35 years from today. If she…

A: Compound = Monthly = 12Future Value = fv = $2,000,000Time = t = 35 * 12 = 420Interest Rate = r = 10…

Q: deposits

A: Introduction: The term annuity refers to series of payments which are made at intervals. Examples of…

Q: (Refer to this word problem In order to plan for their retirement, a married couple decides to…

A: Future Value: The future value is the amount that will be received at the end of a certain period.…

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Q: Determine the size of your investment account 23 years from now (when you plan to retire) if you…

A: Future value: It is the value of the current asset, depending on the assumed rate of the growth, at…

Effective Interest Rate

The term interest rate can be defined as the amount that is charged by the lender as a percentage on the principal amount. Interest rate which is charged annually is known as annual percentage rate.