1. Pensions Meg's pension plan is an annuity with a guaranteed return of 7% per year (compounded quarterly). She would like to retire with a pension of $20,000 per quarter for 25 years. If she works 41 years before retiring, how much money must she and her employer deposit each quarter? (Round your answer to the nearest cent.) 2. You want to buy a 5 year bond with a maturity value of $8,000, and you wish to get a return of 5.5% annually. How much (in dollars) will you pay? (round to nearest cent) 3. Calculate, to the nearest cent, the future value FV (in dollars) of an investment of $10,000 at the stated intrest rate after stated amount of time. 12.9% per year, compounded monthly, after 9 years FV=$ 4.Jennifer's pension plan is an annuity with a guaranteed return of 7% per year (compounded monthly). She can afford to put $300 per month into the fund, and she will work for 35 years before retiring. If her pension is then paid out monthly based on a 25 year payout, how much will she receive per month? (round to nearest cent).
1. Pensions Meg's pension plan is an annuity with a guaranteed return of 7% per year (compounded quarterly). She would like to retire with a pension of $20,000 per quarter for 25 years. If she works 41 years before retiring, how much money must she and her employer deposit each quarter? (Round your answer to the nearest cent.) 2. You want to buy a 5 year bond with a maturity value of $8,000, and you wish to get a return of 5.5% annually. How much (in dollars) will you pay? (round to nearest cent) 3. Calculate, to the nearest cent, the future value FV (in dollars) of an investment of $10,000 at the stated intrest rate after stated amount of time. 12.9% per year, compounded monthly, after 9 years FV=$ 4.Jennifer's pension plan is an annuity with a guaranteed return of 7% per year (compounded monthly). She can afford to put $300 per month into the fund, and she will work for 35 years before retiring. If her pension is then paid out monthly based on a 25 year payout, how much will she receive per month? (round to nearest cent).
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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1. Pensions Meg's pension plan is an annuity with a guaranteed return of 7% per year (compounded quarterly). She would like to retire with a pension of $20,000 per quarter for 25 years. If she works 41 years before retiring, how much money must she and her employer deposit each quarter? (Round your answer to the nearest cent.)
2. You want to buy a 5 year bond with a maturity value of $8,000, and you wish to get a return of 5.5% annually. How much (in dollars) will you pay? (round to nearest cent)
3. Calculate, to the nearest cent, the future value FV (in dollars) of an investment of $10,000 at the stated intrest rate after stated amount of time.
12.9% per year, compounded monthly, after 9 years
FV=$
4.Jennifer's pension plan is an annuity with a guaranteed return of 7% per year (compounded monthly). She can afford to put $300 per month into the fund, and she will work for 35 years before retiring. If her pension is then paid out monthly based on a 25 year payout, how much will she receive per month? (round to nearest cent).
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