Hector has just received an insurance settlement from her accident claim and the insurance company has offered her several alternatives for receiving her settlement. If the rate of interest is an effective annual rate of 10%, Freddy would receive the greatest benefit by selecting which of the following alternatives (circle the letter corresponding to the best option): a)  10 annual cash payments of $50,000 starting two years from today. b)  10 annual cash payments of $37,500 with the first payment to be paid immediately. c)  $100,000 immediately and 5 annual payments of $40,000 starting one year from today. d)  a one-time cash payment of $250,000 immediately. e)  a one-time cash payment of $400,000 to be paid in 5 years. f)  a one-time cash payment of $650,000 to be paid in 10 years.

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.

The Martinez are planning for a retirement home. They estimate they will need $212,000 4 years from now to purchase this home. Assuming an interest rate of 12%, with four equal amounts being deposited at the beginning of the period. What amount must be deposited at the beginning of each period?

Mystia Green is considering the purchase of a house, which will cost her $450,000. She will borrow the entire purchase price and make monthly payments over the next twenty years. The first payment is due next month, and the interest rate is 6.50% per annum (p.a.), compounded monthly She will owe $_________on the house immediately following the 121 st payment.

Jennifer opted for the plan that will pay her $ 52,000 annually for 15 years. The cash will be paid at the end of each year Required A. Assuming that the interest will remain at 6.8 % constant over the whole period , how much will the insurance company disburse at the end of the 15 years of annuity payment to Jennifer? [ordinary annuity] B. If the payment of the cash flow is done in the beginning of the period , what will be the sum for the insurance company will disburse? [interest rate changes to 7.5%] C. If Jennifer is supposed to invest a sum at the beginning of the retirement in the annuity fund of the insurance , calculate the sum she has to give to the company if Payment is received at the end of each period and the interest rate is 4.8%  Payment is done at the beginning of each period and the interest rate is 5.8% [ Annual payment = $52,000 and period is 15 years]

Janet's parents want her to go to the same college that they did. They decided to pay a lump sum payment today of $126000 so she will be able to make 4 years of quarterly withdrawals. The college provide an annuity of 6%, compounded quarterly. If Janet will make her first withdrawal in 8 years, what is the size of each withdrawal?

Jenny and Leo plan to purchase a new house and the couple is able to obtain a 25-year 3.6% (per annum, compounded monthly) amortised loan but they must put down 20% deposit. The loan requires end-of-month repayments of $2,500 where the first payment is due a month after the loan is taken. Assuming that the couple has enough savings for the down payment, what is the cost of the house that they want to purchase? a. 494,068.50 b. 2,470,342.49 c. 750,000 Od. 617,585.62

Suppose your aunt has worked for 40 years and has accumulated a "nest-egg" of $1,000,000. She wishes to begin receiving an annual payment beginning next year, and continuing for another 20 years. If a pension plan will guarantee her an annual interest rate of at least 5% effective, what is her payment? Please show procedure and formulas used. Thanks

Walter and Skyler wish to set up a trust fund for their new daughter, Holly, which will provide her with $2,700 at the end of every 6 months for 26 years. The first payment will be 18 years, 6 months from now and interest on the fund is 4.04% compounded semi-annually. How much should Walter and Skyler set aside today for Holly? $0.00 Round to the nearest cent

Amy purchases an annuity that will give her payments of R at the end of each quarter for seven years. She will receive the first of these payments in 1.5 years. If Amy paid $50,000 for this annuity and will earn a nominal rate of interest of 6% compounded quarterly,(a) write the equation of value (using the appropriate actuarial notation) for this annuity at the time of purchase. Be sure to indicate the effective rate per payment period being used.(b) find the value of R.