ssume you are at age 65 and have the following assets: 1. Pension Plan worth $500,000. You plan to take an ordinary annuity on your pension to withdraw all assets in 20 years. Assume 3.5% interest per year. You will get monthly payments for 20 years. 2. Social Security - $21,600 per year for 20 years. Assume that this is the amount you will receive each year. 3. Savings worth $250,000. You plan to take an ordinary annuity to withdraw all assets in 20 years. Assume 3.5% interest per year. You will get monthly payments for 20 years. 1. What will be the monthly amount received individually from the pension plan, social security, and savings? What will be the monthly total? 2. What will be the yearly amount received individually from the pension plan, social security, and savings? What will be the yearly total? 3. What will be the 20-year amounts received individually from the pension plan, social security, and savings? What will be the 20-year total amount?

To prepare for retirement, you are going to deposit money into a pension plan account every month for the next 25 years. The pension plan has a 6.96% annual rate that compounds monthly. How much money will be in the account after 25 years if for the next 25 years you deposit $465.86 into the pension plan every month?  First find the interest rate per period to four decimal places: i = Next find the total number of deposits: n =  Finally, find the total amount of money in the account after 25 years: FV =

Your insurance company offered you an annuity that pays you $100 at the end of each year. The life of the annuity is 10 years. Assume that market interest rate you can earn on similar risky investments is 8%;a. What should be the present value of this annuity?b. If you are given the first payment immediately starting today, what should be the worth of this annuity?

You just inherited some money, and you decide to put $70,000 in an account that pays 3.25% interest, which you will use to establish an annuity that will pay for your vacations for the next ten years. How much can you withdraw from the account in each of the ten years? $8,044.56 $7,826.10 $6,241.51 $8,311.18

you have decided to begin saving for retirement. you will deposit $800 in a bank account today. than you will deposit an additional $800 every following year for 29 years (an annuity due). if your bank pays 3.73% interest, how much will you accumulate in the account at the end of 30 years

You are saving for retirement. To live comfortably, you decide you will need to save $2 million by the time you are 65. Today is your 26th birthday, and you decide, starting today and continuing on every birthday up to and including your 65th birthday, that you will put the same amount into a savings account. If the interest rate is 4%, how much must you set aside each year to make sure that you will have $2 million in the account on your 65th birthday?

Your uncle is about to retire, and he wants to buy an annuity that will provide him with $97,000 of income a year for 20 years, with the first payment coming immediately. The going rate on such annuities is 5.45%. How much would it cost him to buy the annuity today?   a. $1,192,059.14     b. $1,164,011.03     c. $1,195,837.87     d. $1,261,011.03     e. $1,227,449.63

Assume that you contribute $200 per month to a retirement plan for 20 years. Then you are able to increase the contribution to $300 per month for another 30 years. Given a 7% interest rate, what is the value of your retirement plan after 50 years?

Suppose you plan to retire at age 70, and you want to be able to withdraw an amount of $60,000 per year on each birthday from age 70 to age 100 (a total of 31 withdrawals). If the account which contains your savings earns 6.6% per year simple interest, how much money needs to be in the account by the time you reach your 70th birthday?

3. Use the annuity formula to calculate the future value of an annuity where you deposit $50 into an account gaining 5% interest for 3 years. Assume monthly deposits. Write out the formula first to show your work.