Tiana invested in an annuity with an initial investment of P40,000 followed by deposit of P800 every month for 6 years. The interest rate was 4.25% p.a. compounded monthly. What is the future value of this investment?

Q: If you deposit 500 pesos at the end of each year for 3 years into an annuity that pays 5% annual…

A: An annuity is a contract between you and an insurance company in which you pay a lump-sum payment or…

Q: To supplement your planned retirement, you estimate that you need to accumulate R 220, 000 in 42…

A: Formulas: Future value = Annual payment *((1+rate)^years-1)/Rate

Q: To find the value of an annuity due, you will multiply the value of the ordinary annuity by…

A: Present value is the current worth of the future payments that are to be received. As per time value…

Q: An engineer who is saving for her retirement plans to deposit $500 every quarter, starting quarter…

A: We have to calculate the future value of $500 paid every quarter for 25 years. Interest is 6%…

Q: Daysha would like to save $460 at the end of every three months for the next 6 years in a savings…

A: As per the given information: Interest rate - 1.92% compounded annually Amount deposited at the end…

Q: You require an annual return on your financial investments of 8% per annum. What would you be…

A: Semi annual payment (P) = £1,000 Annual interest rate = 8% Semi annual rate (r) = 8%/2 = 4% Period =…

Q: Suppose your bank pays 10% interest, compounded semiannually. Find out how much should be deposited…

A: Present value is the amount a person is willing to pay now, in order to get an amount for a…

Q: Suppose you invest in an annuity that pays 6% interest, compounded annually. You contribute $4,500…

A: Given information: Annuity payment is $4,500 Interest rate is 6% compounded annually Number of years…

Q: Mark Ventura has just purchased an annuity to begin payment at the end of 2011 (that is the date of…

A: Factor for a 10 year annuity when the approximate discount rate is 13%(5.426)The value of the…

Q: Anna deposits at the beginning of every month of P1,500 into an annuity for 6 years. If she wishes…

A: In this we need to calculate present value factor monthly to get the interest rate.

Q: You have your choice of two investment accounts. Investment A is a 13-year annuity that features…

A: Given data: For Investment A  Number of years = 13 monthly payment = $1500 interest rate = 7.5%…

Q: You would Ilike to have $59,000 in 5 years for the down payment on a new house following graduation…

A: Note: No intermediate rounding is done, only the answer is rounded off to nearest whole number.a)…

Q: You would like to have $15,000 in 4 years for a down payment on a home. How much would you need to…

A: Future value or amount required for down payment = FV = $15,000 Semiannual period of annuity = t = 8…

Q: Recently, More Money 4U offered an annuity that pays 6.9% compounded monthly. If $1,060 is deposited…

A: Time value of money (TVM) refers to the method or technique which is used to measure the amount of…

Q: open an annuity with $5,200.00 and makes monthly payments of $270.00 paid at the end of each month…

A: Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…

Q: Kyla wants to have an annuity payment of $400, at the end of each 6 months. Use the appropriate…

A: Amount of Annuity payment(PMT) is $400 Time period 14 years or 14*2 = 28 semi- annual periods…

Q: kaye's housing loan worth 810,000 for 5 years was approved by the bank with an interest rate of 8%…

A: A loan refers to the amount of money taken by an individual from the lender by the borrower in case…

Q: ​Recently, More Money 4U offered an annuity that pays 5.7%compounded monthly. If$1,402 is deposited…

A: MONTHLY COMPOUNDING RATE (5.7%) 0.4750% PERIOD (11*12) 132 PMT (MONTHLY DEPOSIT) 1402…

Q: An investor requires an annual (year-end) income of $15,000 in perpetuity. Assuming a fixed rate of…

A: Information Provided: Annual income = $15,000 Interest rate = 4%   NOTE: As per our policy, we…

Q: Avishek is saving up to buy a boat. He will make deposits of $787.50 at the end of every two weeks.…

A: The annuity payments that are made at the beginning of the year are called annuity due and the…

Q: Your uncle is trying to figure out how much he has to have set aside today to pay for his son's…

A: The value of current payment or upcoming flow of payments at any future date when flow of payment…

Q: Cheryl is setting up a payout annuity with her bank. She wants to receive a payout of $1200 per…

A: Using excel PV function

Q: Cheryl Wilcox is planning for her retirement, so she is setting up a payout annuity with her bank.…

A: Amount to be saved monthly = Total future amount needed / Present value annuity factor for the…

Q: In the following ordinary annuity, the interest is compounded with each payment, and the payment is…

A: It can be solved using NPER function in excel. =NPER(rate,pmt,pv,[fv],[type]) Rate The interest…

Q: Mr. Romeo wants to deposit a sum of money today that will give an ordinary annuity paying 12,000…

A: The value of annuity can be computed as sum of present value of all withdrawals

Q: Mrs. Dollie availed a cash loan that gave her an option to pay Php10,000 monthly for one year. The…

A: An annuity is a stream of cash flows wherein an equal payment is paid at the end of every period.

Q: You are offered an annuity that will pay $11,000 per year for 24 years (the first payment will occur…

A: As per our guidelines we are supposed to answer only one question (if there are multiple questions…

Q: An insurance settlement of $1 million must replace Trixie Eden's income for the next 45 years. What…

A: a) Since, the settlement is expected to provide an income at the end of each month, this is an…

Q: You deposit $1,000 in an account at the Lifelong Trust Savings and Loan that pays 2% interest…

A: Future value (FV) refers to a means of estimating how much an asset or cash's present value (PV)…

Q: Suppose a friend tells you about an annuity that pays 6% annual interest, compounded semi-annually.…

A: value of investment is Future value of periodic payments

Q: Boris wants to save $27,000.00 for the down payment on a house. He already has $2,700.00, and he…

A: Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…

Q: Connie wants to have an annuity payment of $2,200 at the END of every three months. How much should…

A: Using the PV in excel

Q: You are working for a finance firm and a client comes to you and wants to know how much money they…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: An individual needs $12,000 immediately as a down payment on a new home. Suppose that he can borrow…

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: Tess wanted to have P100,000 on her bank account at the end of 8years. She plans to deposit an…

A: Annuity refers to series of annual payment which are paid or received at start or end of specific…

Q: Leanne Simon made ordinary annuity payments of $215.00 per month for ten years earning 7.85%…

A: The question is based on the concept of Annuity

Q: how much is in the account after 12 years? How much of this is interest?

A: When equal payments are made at equal time intervals, it is called annuity. Payments like monthly…

Q: I want to save for a vacation. My plan is to put $200.00 each month into an ordinary annuity that…

A: A study that proves that the 1value of money today is higher than the future value of money is term…

Q: If money is worth 5% compounded quarterly , find the future worth of a sequence of 12 semi annual…

A: Since you have asked multiple questions, we will solve the first question for you as per policy.…

Q: Suppose that your bank pays 6% interest, compounded quarterly. Find out how much should be deposited…

A: Answer: Calculation of the amount that should be deposited now to yield an annuity payment of 1,500…

Q: Tom wants to put aside $120 at the end of each month into an account earning 6% compounded monthly,…

A: Here we have to use the concept of annuity and concept of time value of money to find the present…

Q: Assume that you keep RM5,555 in the savings account at Affin Bank with an interest of 15 percent per…

A: Saved amount = RM 5,555 Annual interest rate = 15% Period = 5 Years

Q: Use the future value of an annuity due formula to calculate how much (in $) you would have in the…

A: In this question, if the amount is deposit at the beginning of the year then the period we will use…

Q: Tandang Sora has deposited P33,000 today in an account which will earn 10 percent annually. She…

A: Given information: Present value : P33,000 Rate of interest : 10% Time period : 7 years Future…

Q: Suppose that you would like to have $25,000 to use as a down payment for a home in five years by…

A: An Annuity is a continuous flow of systematic timely cash flows made or received for a stipulated…

Q: Sherry expects to deposit $1000 now, $3000 4 years from now, and $1500 6 years from now and earn at…

A: Semi Annual Compounding Time Period = 10 years * 2 = 20 semi annual periods Interest Rate = 12%/2 =…

Q: Wildhorse Co. is considering investing in an annuity contract that will return $28,140 annually at…

A: Present value: This is the amount of future value reduced or discounted at a rate of interest till…

Types of Insurance Contract

Insurance is a contract wherein an individual or entity gets financial protection from the insurance company for any damages or losses incurred. The individual or entity is called the insured, whereas the insurance company is called the insurer. The insured and the insurer enter a legal contract for a fixed term called the insurance term, and the contract is called an insurance policy.