Ned plans to donate $50 per week to his church for the next 60 years. Assuming an annual interest rate of 5.2% compounded weekly, find the present value of this annuity to Ned's church.
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- Your grandparents would like to establish a trust fund that will pay you and your heirs $205,000 per year forever with the first payment 12 years from today. If the trust fund earns an annual return of 4 percent, how much must your grandparents deposit today?Arich relative has bequeathed you a growing perpetuity. The first payment will occur in a year and will be $4,000. Each year after that, you will receive a payment on the anniversary of the last payment that is 3% larger than the last payment. This pattern of payments will go on forever. Assume that the interest rate is 15% per year. a. What is today's value of the bequest? b. What is the value of the bequest immediately after the first payment is made? a. What is today's value of the bequest? Today's value of the bequest is $ (Round to the nearest doliar.)Mo will receive a perpetuity of $34,000 per year forever, while curly will receive the same annual payment for the next 50 years. If the interest rate is 7.8% how much more are Mo's payments worth? 1. $10,706.21 2. $9,559.11 3. $9,877.55 4. $9,081.16 5. $10,196.39 Please show step by step calculation I am having difficulty understanding this question. Only typing answer
- Solve the question James plans to fund his individual retirement account, beginning today, with 20 annual deposits of $2,000, which he will continue for the next 20 years. If he can earm an annual compound rate of 8 percent on his deposits, the amount in the account upon retirement will be……Martin wants to provide money in his will for an annual bequest to whichever of his living relatives is oldest. That bequest will provide $6000 in the first year, and will grow by 7% per year, forever. If the interest rate is 10%, how much must Martin provide to fund this bequest?1. Indicate which formula is correct to determine the future value of an annuity due. 2. The present value of a $25,000 perpetuity at a 14 percent discount rate is 3. Bill plans to fund his individual retirement account (IRA) with the maximum contribution of $2,000 at the end of each year for the next 20 years. If Bill can earn 12 percent on his contributions, how much will he have at the end of the twentieth year?
- Gustav desires to deposit with a Trust Company a sum just sufficient to provide his family with an annuity of $600 per month for twenty-four years. How much he deposit if the Trust Company agrees to accumulate interest at the rate of 6% payable monthly? show solution4. Mr. Thomas will receive $8,500 a year for the next 15 years from her trust. If a 7 percent interest rate is applied, what is the current value of the future payments if first receipt occurs today?(1)Strahd bought a 20-year annuity-immediate with payment size 350 at an annual effective rate of 4%. Just after receiving the eighth payment, Strahd’s life forever changed and he sold the remainder of the annuity, reinvesting the proceeds in a level-payment perpetuityimmediate. What is the payment size K of this perpetuity?
- James plans to receive a monthly annuity of $779 for the next 25 years as part of his inheritance. The interest rate is 10.78 per annum compounded monthly Calculate the present value (PV) of this annuity. $72.26 O$779.00 $867.16 $289.05 O $1.11Joe 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?9. Daniel Plans to fund his individual retirement account, beginning at the end of each year with 20 annual deposits of P2,000, which will continue for the next 20 years. If he can earn an annual compound interest rate of 8 percent on his deposits, what will be the amount in the account upon retirement?