Hank made payments of $106 per month at the end of each month for 30 years to purchase a piece of property. He promptly sold it for $99,810. What annual interest rate would he need to earn on an ordinary annuity for a comparable rate of return?
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- Hank made payments of $205 per month at the end of each month for 30 years to purchase a piece of property. He promptly sold it for $175,751. What annual interest rate would he need to earn on an ordinary annuity for a comparable rate of return? (Answer should be a percentage rounded to the nearest hundredth as needed)Abe Washington sold some property in Oregon and will receive $40,000 in 5 equal payments of $8,000 at the end of each year from today. What is the present value of these future payments at an interest rate of 9% compounded annually? Round answer to the nearest dollar.Hank made payments of $161 per month at the end of each month for 30 years to purchase a piece of property. He promptly sold it for $136,752. What interest rate, compounded monthly, would he need to earn on an ordinary annuity for a comparable rate of return? (Round to the nearest hundredth as needed.)
- Geoff has paid $16,000 for a retirement annuity from which he will receive $1,582 at the end of every six months. The payments are deferred for 11 years and interest is 4% compounded semi-annually. (a) How many payments will Geoff receive? (b) What is the size of the final payment? (c) How much will Geoff receive in total? (d) How much of what he receives will be interest?Shawn purchases a retirement annuity that will pay him $1,000 at the end of every six months for the first nine years and $300 at the end of every month for the next six years. The annuity earns interest at a rate of 2.8% compounded quarterly. a. What was the purchase price of the annuity? Round to the nearest cent b. How much interest did Shawn receive from the annuity? Round to the nearest centBill is the owner of an ordinary annuity that will pay him $12,000 at the end of each of the next three years. This annuity has an annual rate of return of 7%. Given this information, what is the present value today of this annuity?
- Joe wants to have $50,000 ten years from now to use for a down payment on a house. How much should he deposit each month into an ordinary annuity that pays an annual rate of 4.5% in order to achieve his goal?Christopher purchased an annuity that had an interest rate of 3.75% compounded semi-annually. It provided him with payments of $2,000 at the end of every month for 3 years. If the first withdrawal is to be made in 5 years and 1 month, how much did he pay for it? Round to the nearest centDean Gooch is planning for his retirement, so he is setting up a payout annuity with his bank. He wishes to receive a payout of $1,500 per month for twenty-five years. (a) How much money must he deposit if his money earns 7.3% interest compounded monthly? (Round your answer to the nearest cent.) (b) Find the total amount that Dean will receive from his payout annuity.
- Geoff has paid $19,000 for a retirement annuity from which he will receive $1,624 at the end of every month. The payments are deferred for 14 years and interest is 3% compounded monthly. (a) How many payments will Geoff receive? (b) What is the size of the final payment? (c) How much will Geoff receive in total? (d) How much of what he receives will be interest?You hire Thomas to work for you for five years, and you agree to put away enough money as a lump sum now to fund an annuity for him. At the end of those five years, he will retire and may begin drawing out $ 20,000 per year for five years, starting on the last day of each year (in this case, the end of year 6, from when this arrangement began, through year 10). How much must you invest today if your guaranteed interest rate is 3% compounded annually for all 10 years?You hire Thomas to work for you for five years, and you agree to put away enough money as a lump sum now to fund an annuity for him. At the end of those five years, he will retire and may begin drawing out $20,000 per year for five years, starting on the last day of each year (in this case, the end of year 6, from when this arrangement began, through year 10). How much must you invest today if your guaranteed interest rate is 3% compounded annually for all 10 years? (RESOURCE: Annuities) Note: Another two-stage present value problem, involving first finding a present value at a starting point (even though it occurs in our future!) that will generate a series of future payments and then calculating a single-amount present value today to achieve that future goal when payments (withdrawals) will begin. Please show how to solve for both steps, thank you!