Your mother has an annuity that will give her monthly payments for 13 years. She tell you it is worth $121,294 today. If her required return is 9.91%, what is the monthly payment?
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The present value of annuity due is calculated with the series of annuity payments which is discounted to the present by giving effect to the time value of money. It is calculated to make such a decision that either to take lump sum payment now or receive a series of cash payment in future. This is computed with the help of discounting rate in order approximately matches with the current rate of return on investment. the present value become lower when discounting rate is higher and present value become higher when discounting rate is lower.
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- Aylene is preparing for an income fund for her retirement. She wants to receive 15,000 pesos quarterly for the next 25 years starting 1 month from now. The income fund pays 10.5% compounded monthly. How much Aylene deposit now to pay for the annuity?Karen deposits 700 each month into an annuity that pays 12% annual interest at the end of each year. How much will she have in this account at the end of 2 years? FUTURE VALUE OF ANNUITY DUE.Siri plans to retire when her simple annuity savings account has enough money to receive 10000.00 per month for 20 years starting at the end of her first month after her retirement. she starts saving 4420.00 per month. Calculate when should Siri retire from today if her savings account pays 4.9% compounded monthly. Round to the nearest year.
- Cheryl is setting up a payout annuity with her bank. She wants to receive a payout of $1200 per month for 20 years. A. How much will she have to deposit if she earns 8% interest compounde monthly? B. What's the total she will receive from her payout annuity?Delia purchases an annuity that will pay her $10,000 per year for the next 10 years starting next year. Assuming a rate of 6%, what is the value of the annuity. Choose the closest. a) $106,000 b) $131,808 c) $159,374 d) $171,569Karen deposits 300 each month into an annuity that pays 8% annual interest at the end of each year. How much money will she have in this account at the end of 4 years? (Future value of annuity due)
- Alexandria wants to receive $12,000 a year for 8 years. How much must Alexandria invest today in an annuity that pays 5% annually?When Jasmine retires she has $950,000 in a retirement account that earns 6% annual interest, compounded monthly. She is to receive monthly payments for the next 30 years. How much will she receive in each payment? Round your answer to the nearest cent.Aylene is preparing for an income fund for her retirement. She wants to receive 15,000 pesos quarterly for the next 25 years starting 1 month from now. The income fund pays 10.5% compounded monthly. How much Aylene deposit now to pay for the annuity? (Show solution)
- Tina saved $679,000 for her retirement annuity. If she wants it to last her 30 years, earing 4.56% interest compounded monthly, how much is her monthly retirement payment? Give your answers to this question correct to two decimal places.Margaret has $650 000 in her RRSP and wishes to retire.She is thinking of using the funds to purchase an annuity that earn 5% compounded annually and pays her $3 700 at the end of each month.If she buys the annuity for how long in years and months will she receive the payments?Find the future value of each using the future value of an ordinary annuity formula. Priscilla deposits $200 at the end of each month for seven years into a savings accountearning 5% compounded monthly. How much does she have in the account after seven years? Conniedeposits $2,000 at the end of eachyear into her Individual Retirement Account (IRA). It earns 8% compounded annually. How much will Connie have after twenty years? 13. David wants to retire in forty years. If he puts away $300per quarter, at the end of each quarter, into an account earning 5.5% compounded quarterly,how much will he have when he retires?