[Related to Solved Problem 3.18] Some companies offer their employees defined benefit pension plans. Under these plans, employees are promised a fixed monthly payment after they retire. The federal government regulates some aspects of these plans Areporter for the Wall Street Journal wrote that under a former employer's pension plan she was to receive $423 per month beginning in 14 years when she turned 65 years old. She received a letter from her former employer offering a one-time payment of $32.088 in exchange for her agreeing not to receive the monthly pension payments Source: Anne Tergesen, "Should You Take a Lump-Sum Pension Offer?" Wall Street Journal June 5, 2015 Suppose that the reporter's former employer expects that the reporter will live to be 85 years old. That means she would receive the pension payments for 20 years The total amount she would receive would be $423 per month x 12 months per year x 20 years $101,520 Should she turn down the one-time payment? OA. Yes, the interest rate would have to be higher than 8.5% to justify such a low one-time payment OB. Yes, the one-time payment is less than a third of the amount she would receive in pension payments OC. Maybe, the present value of future payments depends on interest rates, which are unknown OD. No, her employer might go out of business

urgent dont use chatgpt answer i will 10 upvotes

What is the present value of a perpetuity that pays $1,500 every year at a discount rate of 7.5%?

First America Bank's monthly payment charge on a 48-month, $19,000 loan is $508.26. The U.S. Bank's monthly payment fee is $517.70 for the same loan amount. What would be the APR for an auto loan for each of these banks? (Use Table 14.1.) Note: Round your final answers to the nearest hundredth percent. APR First America Bank between % and % U.S. Bank between % and %

You are just retired, You pension company promised you that they will pay you $25,000 a year for 30 years. The first payment you will receive is a year from now. The market interest rate is 5% per year. a) What is the present value of you pension if the payment you receive will be the same for 30 years? b) What is the present value of your pension if the payment you receive will grow 3% per year to combat inflation?

Sally worked hard all year and put her savings into a mutual fund that paid a nominal interest rate of 4 percent a year. During the​ year, the CPI increased from 185 to 190. What was the real interest rate that Sally​ earned? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.

Mr. Jones is scheduled to retire on his 65th birthday. He was born January 1, 1946 and was hired by his present employer on January 1, 2001, with a starting salary of $50,000 per year. His employer makes contributions to a pension fund on the first day of January, April, July and October until he retires. Each contribution is 1% of his annual salary. The pension fund earns a nominal annual rate of interest of 8% compounded quarterly. Smith's salary is scheduled to increase by 8% every January 1 starting in 2002. The final employer contribution is on October 1, 2010. Find the value of Smith's pension fund on his 65th birthday.