Winston and Bonnie pay $400 at the end of each 6 months for 5 years into an ordinary annuity paying 8% compounded semiannually. What is the future value at the end of 5 years?

Q: ohn will have to wait three years to receive an inheritance. After the three years, he will receive…

A: given, semi annual payment for deferment period = 3 years Interest conversion period per year =2…

Q: Joe and Angela deposited $4800 in a saving account that pays 6% interest compounded annually. This…

A: Compounded Interest is the type of interest that is calculated only on the cumulative amount.…

Q: Jenna purchases a retirement annuity that will pay her $1,000 at the end of every six months for the…

A: Semi Annual Payment Semi Annual Payment $              1,000.00Time Period (years)8Interest…

Q: Andy invested $850 semi-annually for eight years at 6%, compounded semi-annually. What is the value…

A: Amount invested = $850 Time Period = 8 Years Interest Rate = 6%

Q: Jane receives payments of X at the beginning of each year forever. The present value of her annuity…

A: In this question payment is received at the beginning of each year and present value of annuity is…

Q: June Watson is contributing $2500 each year to a Roth IRA. The IRA earns 4.2% per year. How much…

A: To calculate the future value of June's Roth IRA after 40 years, we can use the formula for compound…

Q: son.3

A: The objective of the question is to calculate the present value of the 27 annual payments of $22,500…

Q: Mr. Hernandez wants to provide a series of 18 yearly allowance for his 1-year old daughter starting…

A: Present worth will be the difference between total present worth of cash inflows and total present…

Q: Hector will receive 1,500 at the end of each year for 5 years. Jill will receive 1,000 at the end of…

A: Annuity refers to a stream of constant and periodic cash flows.   For example a sum of $100 being…

Q: Mike buys an annuity-immediate with varying annual payments for 30 years. During the first 5 years,…

A: Annuity is a series of regular payment after a regular period. There are two types of annuity; 1)…

Q: Find the future value.

A: Time value of money is one of the most fundamental and basic concepts of investing. The phrase “Time…

Q: Tom has decided to invest $400 quarterly for 4 years in an ordinary annuity a 8%. As his financial…

A: Quaterly investment amount is $400 Time period is 4 years Interest rate is 8% To Find: Cash value…

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

A: We need to use ordinary annuity formula to calculate future value of all annuity payment Future…

Q: Maude Pasy $5000 a year into an annuity contract for 25 years. Maude is paying what?

A: Annuity contract is a contract which involves fixed amount of payment for a fixed period or for the…

Q: fran purchased an annuity that provides 6200 quarterly payments foe the next 10 years. The annuity…

A: Annuity Extension ratio (Return on capital per payment) = Cost of annuity / (Number of years* 4…

Q: A son will receive 3000 pesos at the beginning of each 3 months for 4 years. What is the sum of this…

A: The given problem relates to concept of annuity. An annuity is a series of uniform cash flows over a…

Q: A 40-year-old individual will be paid 100 TL in the first year at the beginning of the term and 50…

A: The payment system for any investment plan or project can be different. The individual can use the…

Q: Connie deposits $2000 at the end of each year into her Individual Retirement Account IRA. It earns…

A: Annuity: a contract that provides income for a specified period of years, or for life. Future value…

Q: An inheritance provides you with a $52,000 per year payment for the next 40 years. A 6.00% discount…

A: a) Present value annuity (PV) of an inheritance payment (P) of $52,000 for a period (n) of 40 years…

Q: Mr. Said purchases an ordinary annuity paying 6 % quarterly for 8 years. Find the future value of…

A: Given, Annuity Payment (P) = OMR 2928 Time = 8 years Period (n) = 8*4 = 32 Rate per period (r) =…

Q: Carl has purchased an annuity to be paid at the end of each month for 20 years at an effective…

A: Present Value of Annuity = 200,000 USD YEars = 20 Terms(n) = 20*12 = 240 Rate of Interest(r)  =4%/12…

Q: Noel has $330,000 with which to purchase an ordinary annuity delivering monthly payments for 25…

A: In ordinary annuity payments are made at the end of period and regular over the period of the…

Q: An insurance settlement of $2.5 million must replace Trixie Eden's income for the next 25 years.…

A: We use PMT function to calculate monthly income

Q: Todd Ring plans to deposit $600 at the end of every 6 months for the next 10 years at 12% interest…

A: The future value of the annuity is calculated when it is to be known how much amount one will…

Q: When Jasmine retires she has $950,000 in a retirement account that earns 6% annual interest,…

A: Using PMT function in excel

Q: Jennifer invests $2,400 at the end of each year for 11 years in an ordinary annuity at 10% interest…

A: Periodic Payment = $2,400 Time Period = 11 Years Interest Rate = 10%

Q: Find the total value of the annuity at the end of the 2nd year.

A: Ordinary Annuity: These are annuity payments made at the end of the given period. These payments…

Q: Mary buys a 20 year annuity immediate for $100,000 subject to 6% effective annual interest rate. The…

A: Total number periods in annuity are 20 Purchase price of annuity is $100,000 Effective interest rate…

Q: Salem plans to deposit $2200 every 6 months for 15 years to save for his son's higher education. The…

A: The objective of the question is to calculate the future value of a simple annuity where Salem…

Q: At the beginning of each period for 11 years, Merl Agnes invests $410 semiannually at 4%. What is…

A: The future value of annuity due is the total value of a series of payment made at the beginning of…

Q: Sam pays $10,000 now to purchase a special deferred perpetuity-due. The perpetuity-due has monthly…

A: This means Sam will receive monthly payments of $100 for the first 48 months after the purchase of…

Q: Twice a year for 6 years, Wendy Cortez invested $800 compounded semiannually at 12% interest. What…

A: Annuity due is the annuity payments or receipts at the start of the period. The value is computed as…

Q: . Leo invested $67 250 into an annuity earning 4.4% compounded semi-annually. How much is he able to…

A: A series of fixed payments that are paid or received at an equal time interval is term as the…

Q: At the beginning of each period for 11 years, Bobby Nelson invests $470 semiannually at 4%,…

A: It can be calculated using FV function in excel. FV (rate, nper, pmt, [Pv], [type]) Rate The…

Q: emi-annually. It provided him with payments of $2,000 at the end of every month for 3 ears. If the…

A: Value that is paid for the periodic payment is present value of monthly payment that are based on…

Q: At birth of his grandson, Gregorio Sirug commits to help pay his college education. He decides to…

A: Quarterly deposit (P) = P10,400 Interest rate = 10% Quarterly interest rate (r) = 10%/4 = 2.50%…

Q: Abdullah deposits OMR 1200 at the end of every year for 20 years and the deposit earns a compound…

A: Future value = Yearly deposit * future value annuity factor @5.33% for 20 years

Q: Erica purchases a retirement annuity that will pay her $1,500 at the end of every six months for the…

A: Purchase price of annuity would be the present value of payments received from annuity based on time…

Q: To save for retirement, Milagro put $300 each month into an ordinary annuity for 20 years. Interest…

A: It's important to consider interest rates when making financial decisions, as they can have…

Q: ria deposits $1,000 in her account at a rate of 3% per year as interest for 2 years. what is the…

A: Future value of amount is the amount that is being deposited and amount of interest accumulated over…

Q: Iris expects to receive $1,000 at the end of each of the next three years. She will deposit these…

A: Payments = 1000 Semi Annual Compounding, Time Period = 3 years * 2 = 6 semi annual periods Interest…