Professor's Annulty Corp. offers a lifetime annulty to retiring professors. For a lump payment today of $101,926.9, the firm will pay the retiring professor $13,200 per year for 10 years. What is the interest rate on the annulty? (Do not round Intermediate calculations. Round your answer to 2 decimal places.) %
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- Professor's Annuity Corp. offers a lifetime annuity to retiring professors. For a lump payment today of $59,470.17, the firm will pay the retiring professor $9,200 per year for 25 years. What is the interest rate on the annuity? (Do not round intermediate calculations. Round your answer to 2 decimal places.) %Professor's Annuity Corp. offers a lifetime annuity to retiring professors. For a lump payment today of $96,530.82, the firm will pay the retiring professor a set amount of money per year for 15 years. If the interest rate on the annuity is 5%, then what are the annual payments? (Do not round intermediate calculations. Round your answer to 2 decimal places.)Professor’s Annuity Corp. offers a lifetime annuity to retiring professors. For a payment of $81,000 at age 65, the firm will pay the retiring professor $625 a month until death. a. If the professor’s remaining life expectancy is 15 years, what is the monthly interest rate on this annuity? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) b. What is the effective annual interest rate? (Do not round intermediate calculations. Round your answer to 2 decimal places.) c. If the monthly interest rate is 0.75%, what monthly annuity payment can the firm offer to the retiring professor? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
- Professor's Annuity Corporation offers a lifetime annuity to retiring professors. For a payment of $87,000 at age 65, the firm will pay the retiring professor $775 a month until his death. a. If the professor's remaining life expectancy is 15 years, what is the monthly interest rate on this annuity? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. b. What is the effective annual interest rate? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. c. If the monthly interest rate is 0.75%, what monthly annuity payment can the firm offer to the retiring professor? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. a. Monthly rate on annuity b. Effective annual rate c. Monthly annuity payment % %Professor’s Annuity Corporation offers a lifetime annuity to retiring professors. For a payment of $78,000 at age 65, the firm will pay the retiring professor $550 a month until his death. If the professor’s remaining life expectancy is 20 years, what is the monthly interest rate on this annuity? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. What is the effective annual interest rate? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. If the monthly interest rate is 0.50%, what monthly annuity payment can the firm offer to the retiring professor? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Don't use ExcelProfessor’s Annuity Corp. offers a lifetime annuity to retiring professors. For a payment of $76,000 at age 65, the firm will pay the retiring professor $500 a month until death. a. If the professor’s remaining life expectancy is 20 years, what is the monthly interest rate on this annuity? b. What is the effective annual interest rate? c. If the monthly interest rate is 1.00%, what monthly annuity payment can the firm offer to the retiring professor?
- 13. Professor's Annuity Corp. offers a lifetime annuity to retiring professors. For a payment of $80,000 at age 65, the firm will pay the retiring professor $600 a month until death. a. If the professor's remaining life expectancy is 20 years, what is the monthly rate on this annuity? (Round your answer to 4 decimal places.) The monthly rate on the annuity % What is the effective annual rate? (Round your answer to 3 decimal places.) The effective annual rate % What is the APR? (Round your answer to 4 decimal places.) APR % b. If the monthly interest rate is .5%, what monthly annuity payment can the firm offer to the retiring professor? (Round your answer to the nearest cent.) PMT $What's the future value of a 3-year $500 ordinary annuity, if the quoted interest rate is 11.35%, compounded semiannually? Note that the annuity payments are annual but that the compounding is semiannual. Round your final answer to 2 decimal places. $1,729.62 O $1.757.72 $1,888.60 O $1,777.10 O $1.676.69What is the value of a perpetuity that pays $100 every 4 months forever? The discount rate quoted on an APR basis is 5.7%. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Value of a perpetuity %24
- A personal account earmarked as a retirement supplement contains $292,100. Suppose $250,000 is used to establish an annuity that earns 5%, compounded quarterly, and pays $6500 at the end of each quarter. How long will it be until the account balance is $0? (Round your answer UP to the nearest quarter.) quartersFind the amount accumulated FV in the given annuity account. (Assume end-of-period deposits and compounding at the same intervals as deposits. Round your answer to the nearest cent.) $200 is deposited monthly for 10 years at 6% per year in an account containing $9,000 at the start FV = $ 49150 Need Help? Read It Watch It Submit AnswerAn ordinary annuity paying P1,811 at the end of each year for 15 years, is to be converted to an annuity paying an amount at the beginning of each month for 15 years. Money is worth 10% compounded annually. Determine the following: a.) Present Value of the Payment. b.) Amount being paid at the beginning of each month for 15 years. Note: Don't use excel. Use or draw some cashflows.