Ivanna wants to save money to buy a motorcycle. She invests in an ordinary annuity that earns 5.4% interest, compounded annually. Payments will be made at the end of each year. 2 How much money will she need to pay into the annuity each year for the annuity to have a total value of $6000 after 5 years? 6 ▷ Do not round intermediate computations, and round your final answer to the nearest cent. If necessary, refer to the list of financial formulas. 9 A

Ivanna wants to save money to buy a motorcycle. She invests in an ordinary annuity that earns 5.4% interest, compounded annually. Payments will be made at the end of each year. 2 How much money will she need to pay into the annuity each year for the annuity to have a total value of $6000 after 5 years? 6 ▷ Do not round intermediate computations, and round your final answer to the nearest cent. If necessary, refer to the list of financial formulas. 9 A

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Latoya wants to save money to buy a motorcycle. She invests in an ordinary annuity that earns 7.8% interest, compounded monthly. Payments will be made at the end of each month. How much money will she need to pay into the annuity each month for the annuity to have a total value of $6000 after 5 years? Do not round intermediate computations, and round your final answer to the nearest cent. If necessary, refer to the list of financial formulas.
Kaitlin wants to save money to purchase a car. She buys an annuity with yearly payments that earn 2.8% interest, compounded annually. Payments will be made at the end of each year. Find the total value of the annuity in 5 years if each yearly payment is $3797. Do not round any intermediate computations, and round your final answer to the nearest cent. If necessary, refer to the list of financial formulas.
Ms. H wants to save $1500 over the next two years to use as a down payment on a new car. If her bank offers her 5%interest, what monthly payment would she need to put into an ordinary annuity in order to reach her goal? Round to thenearest cent.
Holly Krech is planning for her retirement, so she is setting up a payout annuity with her bank. She wishes to receive a payout of $1,900 per month for twenty years. (a) How much money must she deposit if her money earns 7.8% interest compounded monthly? (Round your answer to the nearest cent.)___________ $ (b) Find the total amount that Holly will receive from her payout annuity. Thank you!
Martina wants to save money to open a tutoring center. She buys an annuity with a yearly payment of $364 that pays 3.4% interest, compounded annually. Payments will be made at the end of each year. Find the total value of the annuity in 9 years. Do not round any intermediate computations, and round your final answer to the nearest cent. If necessary, refer to the list of financial formulas.
Tanja wants to establish an account that will supplement her retirement income beginning 25 years from now. Find the lump sum she must deposit today so that $600,000 will be available at time of retirement, if the interest rate is 6%, compounded quarterly. How much must Tanja invest? P=$ (Round to the nearest cent as needed.)
The Wright family wants to save money to travel the world. They purchase an annuity with a yearly payment of s480 that earns 4% interest, compounded annually. Payments will be made at the end of each year. Find the total value of the annuity in 14 years. Do not round any 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, 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, Kaitlin invests in an ordinary annuity that earns 2.4% interest, compounded annually. Payments will be made at the 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 s98,000 after 19 years? Do not round intermediate computations, and round your final answer to the nearest cent. If necessary, refer to the list of financial formulas.
Joe plans to set aside money for his young daughter's college tuition. He will deposit money in an ordinary annuity that earns 4.8% interest, compounded quarterly. Deposits will be made at the end of each quarter. 00 E₂ How much money does he need to deposit into the annuity each quarter for the annuity to have a total value of $72,000 after 14 years? ▷ 4 Do not round intermediate computations, and round your final answer to the nearest cent. If necessary, refer to the list of financial formulas. $ X S
K. Tanja wants to establish an account that will supplement her retirement income beginning 30 years from now. Find the lump sum she must deposit today so that $400,000 will be available at time of retirement, if the interest rate is 10%, compounded quarterly. How much must Tanja invest? P= (Round to the nearest cent as needed.)
Klipling wants to have $43257 for a down payment on a house ten years from now. She can either deposit one lump sum today or she can wait two years and deposit a lump sum. Assume an annual interest rate of 2.3%. How much additional money must she deposit if she waits for two years rather than making the deposit today? O 757.32 O 774.73 O 1532.05 O 1640.21 O1603.33

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