You have $12,500 you want to invest for the next 20 years. You are offered an investment plan that will pay you 7 percent per year for the next 10 years and 9.5 percent per year for the last 10 years. How much will you have at the end of the 20 years?

Q: You are planning to deposit $4,200 into a financial investment that will pay annual interest rate of…

A: A concept that implies the future worth of the money is lower than its current value due to several…

Q: You expect to receive $26,000 at graduation in two years. You plan on investing it at 9.25 percent…

A: Present Value = $26,000  Future Value = $161,000  Rate (r) = 9.25%

Q: t be until this occurs?

A: To calculate the years will it be to recieve $ 60,000 from $9,000 at 10% , the formual to be applied…

Q: Your parents say they will loan you $15,000 today for college. They would like to be repaid $21,000…

A: Present value = pv = $15,000 Future value = fv = $21,000 Time = t = 10 years

Q: If you invest $1,000 each month for five years, what will be the value of the investment after five…

A: The below formula can be used to calculate future value:

Q: An investment offers to pay you $8,000 a year for five years. If it costs $28,840, what will be your…

A: YEARS 5 PMT (MONTHLY DEPOSIT) 8000 PRESENT VALUE $28,840 FUTURE VALUE $0

Q: compounded

A: Formula to calculate the value in the future: A = P(1+r)^n Where A is the future value P is the…

Q: You have $15,000 that you would like to invest for the next 32 years. One option is to invest the…

A: One way to calculate the future value of any invest is to calculate its value after specific period…

Q: You will receive $4,000 three years from now. The discount rate is 10 percent.  a) What is the…

A: In the given question we need to compute the value of investment after two years and one year from…

Q: You expect to receive $10,000 in two years. You plan on investing it at 9 percent until you have…

A: Amount invested = a = $10,000 Interest rate = r = 9% Future value = $75,000 Time before investment =…

Q: An investment offers to pay you $10,000 a year for four years. If it costs $27,980, what will be…

A: given present value    = 27980 future value a year…

Q: You are considering a 10 year investment plan in which your target is $150,000. There are two…

A: We have to find the annuity that will result into a target FV after a pre determined time period.

Q: An investment pays you $100 at the end of each of the next 3 years. The investment will then pay you…

A: Time value of money is a concept that deals with calculating the actual worth of money at present…

Q: Say you want to invest a certain amount of your salary each year. This year you take $2,500 out of…

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

Q: An investor is considering an investment that will pay $2,270 at the end of each year for the next…

A: Payment = p = $2270 Time = t = 10 years Interest rate = r = 12%

Q: years

A: 7 years starting from the beginning of the month , so the number of times it grows  n = 1+7*12= 85…

Q: You are told that if you invest $11,600 per year for 18 years (all payments made at the beginning of…

A: Annual rate of return refers to the percentage of earnings or interest earned on the investment made…

Q: You plan on saving $15,200 this year, nothing next year, and $17,500 the three years after that. You…

A: The concept of time value of money will be used here. As per the concept of time value of money the…

Q: Your plan is to have $40,000 in your account, 13 years from today. You can invest in an account that…

A: Future value required (FV) $40,000 Interest rate = 8.05% Monthly interest rate (r) = 8.05%/12 =…

Q: a) If you invest $100 every year for the next 20 years starting one year from today and you earn…

A: The Future Value of the Annuity refers to the sum value of all the payments which is occurred…

Q: If you invest $5,000 today, you will receive $1,000 in a year, $1,500 each in year 2 and year 3, and…

A: Calculate the net present value as follows:

Q: When you retire 40 years from now you plan to make 10 withdrawals from your savings account. You…

A: Annuity refers to series of equalized payments that are received or paid either at start or end of…

Q: An investment opportunity requires a payment of $620 for 12 years, starting a year from today. If…

A: Present value : The financial concept used to establish the current valuation of future cash flows…

Q: A. You are offered an investment that will pay you $200 in one year, $400 the next year, $600 the…

A: The present value is today's value of future cash flows. It represents the discounted value of cash…

Q: You are offered $90000 today or $380000 in 10 years. Assuming that you can earn 15 percent on your…

A: Step 1: Given that, which one should you choose for the offer value today = $90000 or Present value…

Q: There are three investments being offered to you; one pays you $100,000 at the end of 10 years;…

A: The present value of the investment is calculated byThe investment with the highest present value…

Q: You’re buying your first house for $180,000, giving $35,000 as down payment. The amount you will…

A: The amount of interest payable over the term of the loan and the loan amount due is equal to the…

Q: An investment promises to pay you $80 per year for twenty years and, in addition, at the end of the…

A: The problem is to find the price that will be willing to be paid today for cashflows to be generated…

Q: Assume that you contribute $5,000 per year to a retirement plan for 20 years. Then you are able to…

A: The future value of annuity can be calculated using this formula

Q: An investment will pay you $10,000 in 10 years, and it also will pay you $400 at the end of each of…

A: The amount to be paid for the investment is calculated as the present value of annuity plus the…

Q: You purchase an investment for $1,000. You expect it will increase in value at a rate of 9% per…

A: Initial Investment is $1,000 rate is 9% per yeat time period is 12 years   To Find:- Worth of…

Q: You expect to receive $12,000 at graduation in two years. You plan on investing it at 10 percent…

A: Compound interest is a financial concept where your initial investment (or principal) earns…

Q: An investor plans to invest $500 a year and expects to get a 10.5% return. If the investor makes…

A: Formula to be used,   PV = P[1-(1+r)^-n]/r where, PV=Present value P=Principal amount r=Rate of…

Q: You are offered an annuity that will pay $10,000 a year for ten years (that is, ten payments), but…

A:

Q: You are considering an investment that will pay you $1,200 per month for three years. The first…

A: An annuity is a series of equal payments occurring at regular intervals. The present value is…

Q: After consulting with your financial advisor, you figured that you need $9,000 per year for your…

A: Value of annuity is the present value of payments from the annuity based on the interest rate and…

Q: You expect to receive $150,000 per year on a contract that will last 5 years. You are trying to…

A: Present value of future cash inflows will be equal to the worth of contract today.   Worth of…

Q: ou are offered an investment that requires you to put up $5,000 today in exchange for $12,000 10…

A: Future value is the compounded value of a sum of money invested for a period of time at a specified…

Q: There are three investments being offered to you; one pays you $100,000 at the end of 10 years;…

A: The objective of the question is to determine which investment option is the best based on the…

Q: In 10 years, you plan to retire and buy a lotin the province. The lot you are looking at currently…

A: The time value of money concept asserts that an amount of money is worth more now than it would be…

Q: You are valuing an investment that will pay you $26,000 per year for the first 4 years, $36,000 per…

A: The value of the investment today is equal to the present value of all cash inflows from the…

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.