Maggie is 25 years old. She wants to buy an ordinary annuity that pays $4,000 a year for the next 20 years. She expects interest rate to stay at 8%p.a. over the time period. The maximum price that she should be willing to pay for the annuity is ________.   Question 13 options:   1)  $32,000   2)  $39,272   3)  $40,000   4)  $80,000

Sandra wants to take the next six years off work to travel around the world. She estimates her annual cash needs at $31,000 (if she needs more, she will work odd jobs). Sandra believes she can invest her savings at 12% until she depletes her funds. (Click the icon to view Present Value of $1 table.) (Click the icon to view Future Value of $1 table.) (Click the icon to view Present Value of Ordinary Annuity of $1 table.) (Click the icon to view Future Value of Ordinary Annuity of $1 table.) Requirement 1. How much money does Sandra need now to fund her travels? (Round your answer to the nearest whole dollar.) With the 12% interest rate, Sandra needs Requirement 2. After speaking with a number of banks, Sandra learns she will only be able to invest her funds at 4%. How much does she need now to fund her travels? (Round your answer to the nearest whole dollar.) With a 4% interest rate, Sandra would need If Sandra's savings are earning a lower interest rate (4%), she will need to save to…

18. Karen wants to borrow $5,000 and she is a bit desperate. She says “I’ll pay you $500/year at 11.7% interest until it’s paid off!” Under these terms, how long will it take Karen to pay back the $5,000?

Elizabeth has $17000 to invest. She requires $34000 for a down payment for a house. If she is able to invest at 8%, how many years will it be before she will accumulate the desired balance? Select answer from the options below 7 years. 9 years. 8 years. 6 years.