our father is about to retire, and he wants to buy an annuity that will provide him with $93,000 of income a year for 25 years, with the first payment coming immediately. The going rate on such annuities is 5.70%. How much would it cost him to buy the annuity today? a. $1,293,250.21

Q: Through your career, you have saved-up $1,150,000. You are now ready to retire. You discuss your…

A: Present Value = pv = $1,150,000Annuity = pmt = $68,000Time = nper = 25 Years

Q: e, how much would you be willing to pay if this were a 20-year, annual payfmell y instead of a…

A: Required rate = (Perpetual cash flow / price) * 100 Required rate = (1,350 / 15,625) * 100 Required…

Q: How many payments can Gabriel expect to receive in retirement? He expects to earn 7.04 percent in…

A: The concept of TVM refers to the interest-earning capacity of money because which money received…

Q: You just paid $570,000 for an annuity that will pay you and your heirs $14,000 a year forever. What…

A: The fixed regular periodic payment made is regarded as an annuity. The annuity is broadly classified…

Q: Your grandmother bought an annuity from Great-West Life Insurance Company for $439,002 when she…

A: Time, the value of money refers to the concept used for calculating the future value of an asset…

Q: Joe wants to have $50,000 ten years from now to use for a down payment on a house. How much should…

A: Given: Future value = $50,000 Interest rate = 4.5% Years =10

Q: You want to retire exactly 35 years from today with $1,990,000 in your retirement account. If you…

A: Monthly deposits are the amount of money kept aside that earns a defined rate of interest for a…

Q: Paola Watkins currently has $20,000 in her retirement fund and she will invest $1,000 in this fund…

A: Future value of money is the amount of deposit done and amount of interest accumulated over the…

Q: John has $3200 monthly in extra discretionary funds that he would like to invest in his future…

A: Given Information Annuity amount = $3200 Made equal amount annuity by dividing into 2 parts Interest…

Q: An individual wants to retire in 25 years and requires $300,000 in savings at that time. The…

A: We need to use RATE function in excel to calculate annual rate of interest on deposit.The formula is…

Q: Your mother has an annuity that will give her monthly payments for 14 years. She tell you it is…

A: No. of years= 14PV of annuity= $124357Required rate= 11.56%Monthly Payment of annuity =?

Q: son.3

A: The objective of the question is to calculate the present value of the 27 annual payments of $22,500…

Q: 17) Sun Woo wants to purchase an annuity that will pay him $1,000 a month for fifteen years. If he…

A: The Present Value of Ordinary Annuity refers to the concept which dictates the discounted value of a…

Q: will receive a perpetuity of $34,000 per year forever, while curly will receive the same annual…

A: Present value is the equivalent value of money today of the future money based on the time value of…

Q: Your friend offers to pay you an annuity of $2,500 at the end of each year for 3 years in return for…

A: Annual Payment (P) = $2,500Interest rate (r) = 5.5% or 0.055Number of years (n) = 3

Q: Matt will receive an annuity of $11,850.75 a year for nine years. The first payment is to be…

A: Here, Particulars Values Annual receipts (PMT)  $ 11,850.75 Time period (NPER) 9.00…

Q: en you retire at 65 you can take either $500,000 in cash or an ordinary annuity that promises to pay…

A: Today value=PV=$500000PMT=annuity=$47488.98Rate-r=8%Required =number of years

Q: You wish to retire 40 years from now. You want OMR 50,000 per year once you retire with the first…

A: The time value principle in finance states a sum of money may have different purchasing powers in…

Q: Dylan purchases a retirement annuity that will pay him $1,500 at the end of every six months for the…

A: Present value is an estimate of the present value of future cash values ​​that may be received at a…

Q: Destiny invests $20,000 today into a retirement account. She expects to earn 7 percent, compounded…

A: The FV of an investment refers to the value of the cash flows of the investment at a future date…

Q: 7. Kate deposits $9,900 each yearinto her retirement account. If these funds have an average eaming…

A: Given, A=$9900 r=11% n=40 years

Q: Since Charles is a good boy, his mother plans to give him pocket money three times: S100 today. S100…

A: Here, Amount received today is $100 Amount received after a year from today is $100 Amount received…

Q: Consuelo pays into an ordinary annuity for 40 years. a. If the annuity earns 5.4% yearly interest…

A: The present value of an annuity is the current value of a series of future payments or receipts,…

Q: you would like to have enough money saved to receive a $53,000 per year perpetuity after retirement.…

A: Perpetuity refers to something that lasts forever, without an end.It represents an infinite duration…

Q: Your uncle Barry is about to retire, and he wants to buy an annuity that will provide him with…

A: ANNUITY =77000 Period =25 years  interest rate =8.5%

Q: Emily is trying to decide between investing $1,000 or $1,500 at the beginning of each year for the…

A: Future value of money is the amount of deposit done and the amount of compounded interest…

Q: r. Bearer may choose to take a lump-sum payment of $25,292.8 now from his insurance policy or an…

A: Annuity is the series of equal payments that are made at regular intervals and payments are uniform…

Q: Annuity A. Edward purchased an annuity for $30,000.  The annuity will pay Edward $700 per month for…

A: A Exclusion ratio: 35.71% Excluded Amount in a year: $2,999.64 Taxable Amount in a year: $5,400.36 B…

Q: Joe plans to set aside money for his young daughter's college tuition. He will deposit money in an…

A: Future value of an annuity: Future value of the annuity is the annuity factor used to calculate the…

Q: Karen and Dave are planning to retire today. They would like to receive $50,000 per year in today's…

A: Dear student, as per Bartleby answering guideline we can not answer more than 1 question if students…

Q: Rita desires to purchase an ordinary annuity that will pay her $4,000 a year for the next 20 years.…

A: The present value of the ordinary annuity table is used when the periodic payments are made at the…

Q: our girlfriend just won the Florida lottery. She has another choice of a 20-year annuity of…

A: To determine  the Future Value of Annuity of $2,850,000 after 20 years, at 4% rate of interest.

Q: 4. Suppose Ken invested $1 million in an ordinary annuity that earned 4.25%. a. How much would he…

A: We will solve this question with the help of PMT function in excel where,   rate- Interest rate…

Q: Gabry Ponte has a contract in which he will receive the following payments for the next five years:…

A: Time value of money is a concept where we consider interest eliminate for time period. This concept…

Q: You have just been notified that you will receive $8,700 a year for the next 17 years from an…

A: We should accept the amount today in exchange for annual receipts would be the present value of the…

Q: Josephine is considering purchasing an annuity with a rate of return of 6% compounded semi-…

A: Given: Interest rate =6% 20 equal payments at the beginning of the 6 months = $100 Next 20 equal…

Q: A grandmother opens an investment account for her only granddaughter on the day she was born,…

A: The FV of an investment refers to the combined value of the cash flows at a particular future date…

Q: Katie is planning to receive an annuity of $7,545 per year for the next 38 years as part of her…

A: Annuity refers to the amount of payment that will be received or paid by the investors at regular…

Q: Michael receives from his great aunt three stores. He estimates that these will bring him money at a…

A: Details Available Annual Investment $1000 Interest Rate 4.50%   Concept of Investment value…

Q: Your father is considering purchasing an annuity that pays $5,000 at the beginning of each year for…

A: The objective of the question is to find out the present value of an annuity that pays $5,000 at the…

Q: Your grandparents would like to establish a trust fund that will pay you and your heirs $175,000 per…

A: The problem is asking us to find the present value of a perpetuity. A perpetuity is a type of…

Q: You celebrated your 20th birthday this morning. Your grandmother generously gave you $24,000. You…

A: We first need to determine the time taken for $24000 to become $2,000,000 given the interest rate of…

Q: What annual contributions to the retirement fund will allow you to receive the $18,000 annuity?

A: An annuity is a fixed and defined set of payments to be received for a certain number of years, It…

Retirement Income

Retirement income is the income received by the retiring person after retirement. Income can either be paid every month or paid annually. The retiree would get a guaranteed income until their death. Retirement income payment differs from person to person based on their investment type and payment method. Some are paid on a lump-sum basis and some are paid in a regular series with fixed payment or variable cash flow. Retirement income can be created from retirement savings, investment, salary, bonus, and wages from employment. Every working individual should plan their retirement income according to their income goals for the future. The plan should be made by identifying suitable income sources, estimating future expenses, applying a savings plan, and managing risk and assets. The most common age for retirement is between 60-65 years.