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- Tom has decided to invest $400 quarterly for 4 years in an ordinary annuity a 8%. As his financial adviser calculate for Tom the total cash value of the annuity at the end of year 4.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.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.
- 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 inheritanceMaria wishes to accumulate $8,000 by the end of 5 years by making equal, annual, end-of-year deposits over the next 5 years. If Maria can earn 7% on her investments, how much must she deposit at the end of each year to meet this goal?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?
- Abigail wishes to establish a trust fund from which her daughter can withdraw $6,000 every six months for 15 years, when she reaches 16 years old. At the end of which time, she will receive the remaining money in the trust, which she would like to be $25,000. The trust will be invested at 6% per annum compounded semi-annually. How large should the trust be?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?Kavita determines that to receive an annuity of $6900 each quarter for 5 years at 6.5% per year compounded quarterly, she must deposit $117 016.64. How much must Kavita deposit for an annuity that pays twice as much, $13 800, each quarter? a) She must deposit exactly twice as much. b) She must deposit exactly half as much. C) She must deposit more than twice as much. d) She must deposit less than half as much.
- 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) $171,569A woman deposits $260 of her quarterly check into an annuity for the education of her child. She does this at the end of each quarter for 4 years into an account paying 6% per year, compounded quarterly. Find the amount of the annuity and the interest earned.Una Day is planning to retire in 11 years, at which time she hopes to have accumulated enough money to receive an annuity of $21,000 a year for 16 years of retirement. During her pre-retirement period she expects to earn 12 percent annually, while during retirement she expects to earn 14 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 $