Joe would like to have $80,000 saved in 10 years. If he invests his money in an ordinary annuity earning an annual interest rate of 5.4% compounded monthly, what should his monthly payment be?
Q: Your uncle is about to retire, and he wants to buy an annuity that will provide him with $75,000 of…
A: The cost to buy an annuity today is calculated by discounting the annuity values with the present…
Q: money should he have
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A: Given: Future value = $50,000 Interest rate = 4.5% Years =10
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A: We need to use future value formula to calculate the amount to be invested today. PV =FV(1+r)n…
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A: The future value is the value of the amount in future that has to be paid or received at future.
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A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
Q: Roger Baker has accumulated $775,000 in his RRSP and is going to purchase a 20-year annuity from…
A: An Annuity is simply a fixed amount which will be received by Roger Baker at every month-end Present…
Q: Art wants to know how much he'll have to invest today to receive an annuity of $8,000 for three…
A: The computation of amount of investment is as follows:The investment needed today is the present…
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A: The provided information are: Particular Value RATE 5.25% YEARS 19 PMT (MONTHLY PAYMENT)…
Q: Jami Minard wants to receive an annuity of $8,000 at the beginning of each year for the next 10…
A: Annuity refers to a contract between an individual and an insurance company under which a desired…
Q: Dean Gooch is planning for his retirement, so he is setting up a payout annuity with his bank. He…
A: Payout annuity is the amount that an investor receives at a regular interval after a certain period…
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A: Here, Required Amount is $1,000,000 Time Period (n) is 20 years Interest Rate (r) is 9% Compounding…
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A: Solution-PV of growing annuityi=0.04r=0.12
Q: An annuity offers $1,000 for 10 years. If you can earn 12 percent annually on your funds, what is…
A: Annuity Amount = $1,000 Years(n) = 10 Interest Rate(r) = 12% Present Value of Annuity =…
Q: Your uncle is about to retire, and he wants to buy an annuity that will provide him with $7,000 of…
A: Annual income (C) = $ 7000 Number of annual payments (n) = 21 Annual interest rate (r) = 5.25%
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A: The present value of the annuity can be calculated using PV Function in excel. PV (rate, nper, pmt,…
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Q: Steven plans to contribute $300 to his "super unrealistically high" savings account at the end of…
A: Here,
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A: Using excel PV function
Q: It is now five years later, and Adrian has saved enough money for a 20 percent down payment on a…
A: Time value of money: Time value of money refers to the concept that the value of money available at…
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A: Amount to be saved monthly = Total future amount needed / Present value annuity factor for the…
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Q: You would like to have enough money saved to receive a growing annuity for 25 years, growing at a…
A: The present value of the growing annuity is the current worth of a cash flow series growing at a…
Q: Dean Gooch is planning for his retirement, so he is setting up a payout annuity with his bank. He…
A: The annuity is a series of cash flow wherein an equal amount is paid every period.
Q: Alexandria wants to receive $12,000 a year for 8 years. How much must Alexandria invest today in an…
A: Computation:
Q: How much will you have in accumulated savings 20 years from now if you deposit $2,000 at the end of…
A: Period = 20 Years Year end deposit = $ 2000 Growth rate = 2% Interest rate = 5%
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A: The future value is the amount that will be received at the end of a certain period. In simple…
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A: in this problem we have to find out future value FACTOR and from that we get future value.
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Q: Can you help me work out this problem in detail? Ben wants to receive $6,000 a year for 10 years.…
A:
Q: Abby plans to deposit $100 at the end of every quarter for the next 10 years into an annuity that…
A: The computation of the value at maturity as follows:
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A: Using the present value function in excel
Q: You are planning to save for your retirement during the next 30 years. You want to be able to…
A: EAR = (1+apr/n)^n - 1 EAR = (1+8%/12)^12 - 1 = 8.299951% Now let us find out the present value of…
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A: Present value refers to the current valuation for a future sum. Investors determine the present…
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A: Annuity refers to a series of payment made at a regular interval of time. We need to use the concept…
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A: An annuity is the fixed payment that an investor receives from an investment or fixed deposits made…
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A: Using excel PMT function
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- You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years. Which table will help you determine the value of your account at the end of 12 years? A. future value of one dollar ($1) B. present value of one dollar ($1) C. future value of an ordinary annuity D. present value of an ordinary annuityCan you help me work out this problem in detail? Ben wants to receive $6,000 a year for 10 years. How much must he invest today in an annuity that pays 7% annually?Dean 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.
- Your uncle is about to retire, and he wants to buy an annuity that will provide him with $6,800 of income a year for 14 years, with the first payment coming immediately. The going rate on such annuities is 5.25%. How much would it cost him to buy the annuity today?Enrique already knows that he will have $300,000 when he retires. If he sets up a payout annuity for 15 years in an account paying 4.55% interest, how much could the annuity provide each quarter?You would like to have enough money saved to receive a $90,000 per year perpetuity after retirement. The annual interest rate is 8 percent. Required: How much would you need to have saved in your retirement fund to achieve this goal? a) Assume that the perpetuity payments start on the day of your retirement. b) Assume that the perpetuity payments start one year from the date of your retirement.
- You are earning an average of $46,500 and will retire in 10 years. If you put 20% of your gross average income in an ordinary annuity compounded at 7% annually, what will be the value of the annuity when you retire?Your uncle is about to retire, and he wants to buy an annuity that will provide him with $73,000 of income a year for 20 years, with the first payment coming immediately. The going rate on such annuities is 5.25%. How much would it cost him to buy the annuity today? 6. alo at isCheryl is setting up a payout annuity with her bank. She wants to receive a payout of $1200 per month for 20 years. A. How much will she have to deposit if she earns 8% interest compounde monthly? B. What's the total she will receive from her payout annuity?
- Jean-Rene wants to make a lump-sum deposit today such that at the end of every three months for the next five years he can receive a payment starting at $2,500 and increasing by 1% each time thereafter. At the end of the term, an additional lump-sum payment of $10,000 is required. If the annuity can earn 8.75% compounded semi-annually, what lump sum should he deposit today? Using financial Calculator.Suppose Chris plans to make a $644 savings payment at the beginning of each month for 22 years with his first payment 10 years from today. Use this information and assume an interest rate of 5.91% per year to find the future value of his savings payments.Dylan is setting up an income fund for his retirement. He would like to receive $12000 every 6 months for the next 30 years. The fund pays 8.8 % per year compounded semi-annually. How much must he pay for the annuity? Formula: PV= = R[1-(1+i)n] 2