Problem 5-19 Future Value of Multiple Annuities (LG5-2) Assume that you contribute $250 per month to a retirement plan for 25 years. Then you are able to increase the contribution to $500 per month for another 25 years. Given a 9.0 percent interest rate, what is the value of your retirement plan after the 50 years? (Do now round intermediate calculations and round your final answer to 2 decimal places.) Future value of multiple annuities

Problem 5-19 Future Value of Multiple Annuities (LG5-2) Assume that you contribute $250 per month to a retirement plan for 25 years. Then you are able to increase the contribution to $500 per month for another 25 years. Given a 9.0 percent interest rate, what is the value of your retirement plan after the 50 years? (Do now round intermediate calculations and round your final answer to 2 decimal places.) Future value of multiple annuities

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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QUESTION 1 You have a sum of $100,000 and wish to withdrawa certain (unknown) amount in year 1 and increase that by 4%6 each year for 20 years. How much can the first withdrawal be if the interest rate is 5%.
Problem 5-4 Present Value of an Annuity (LG5-4) What's the present value of a $850 annuity payment over five years if interest rates are 9 percent? Note: Do not round intermediate calculations and round your final answer to 2 decimal places. Present value
QUESTION 3 If you have a 12-year annuity paying $349 monthly beginning in 2 years when interest is 3.53% compounded semi-annually, what is the number of missed payments? Treat the deferred annuity as an annuity due with the first annuity payment at the 2-year mark. PLEASE SHOW COMPLETE SOLUTION (DO NOT USE EXCEL)
question 5 out 20
QUESTION 31 After he retires, Dewey would like to be able to withdraw $1,250 every week for a total of 30 years after he retires. If the account earns 5% interest, how much will Dewey need in his retirement account when he retires? Give your answer to the nearest dollar. Summarize the information provided, stating the interest rate in a decimal form. d = r = k = N = Identify the formula you will use to solve by writing the letter of the formula here: A. A = Po(1 + rt) B. PN = Po(1 + /k) Nk C. PN = d((1 + /k)Nk – 1) ("/k) %3D D. Po = d(1 - (1 +/k¬Nk) + ("/k) Solve the problem and give your answer here:
ques 15
QUESTION SIX a) Find the Future Value of an annuity for$1000 paid at the end of each year for 3 years assuming interest is compounded annually at 7%? b) Julie Miller will receive the set of cash flows below. What is the Present Value at a discount rate of 10%. Year one 500, year two 500, year three 300, year four 300 and year five 150. c) Perpetuity has no time limit. The present value of $100 perpetuity discounted at 15% is?
Chapter 10 Discussion Q2 A perpetuity will pay $900 per year, starting five years after the perpetuity is purchased. What is the present value (PV) at time 0, given that the interest rate is 11%? Show your steps. A) $2695 B) $4312 C) $5390 D) $3234
question 15
QUESTION 14 What’s the interest rate of a 8-year, annual $3,500 annuity with present value of $20,000? (Use a time value of money calculator or a spreadsheet. Round your answer to 2 decimal places.) ANNUITY INTEREST RATE %
Question 33 Growing Annuity Problem: Set Calculator to BEGIN for this problem.i.e., we are assuming Payments are at beginning of year (Annuity Due). Assume you save $7500 at the beginning of each year AND you increase this amount by 3.5% each year. How much will you have in 40 years if your expected return = 8% per year. [NOTE: I have %3D rounded the answer to whole dollars.) O $3.245,998 $3,197,747 $2,503,625 $1,228,358 O $802,622 Question 34 Growing Annuity Problem: Set Calculator to BEGIN for this problem.ie, we are assuming Payments are at beginning of year (Annuity Due). Assume you have just retired and you currently have $2,500,000 in ch vear for

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