2. Annuities - Johan, a sophomore management student, receives a call from an insurance agent who believed that Johan is an older man ready to retire from teaching. He talks to him about several annuities that she would buy that would guarantee her an annual fixed income. The annuities are as follows: Initial Payment into Annuity (at t = 0) Duration of Annuity (Years) Amount of Money Received Year per Annuity 12 $8,500 $7,000 $8,000 A $50,000 25 $60,000 20 C $70,000 If Johan could earn 11 percent on his money by placing it in a savings account, should he place it instead in any of the annuities? Which ones, if any? Why?

2. Annuities - Johan, a sophomore management student, receives a call from an insurance agent who believed that Johan is an older man ready to retire from teaching. He talks to him about several annuities that she would buy that would guarantee her an annual fixed income. The annuities are as follows: Initial Payment into Annuity (at t = 0) Duration of Annuity (Years) Amount of Money Received Year per Annuity 12 $8,500 $7,000 $8,000 A $50,000 25 $60,000 20 C $70,000 If Johan could earn 11 percent on his money by placing it in a savings account, should he place it instead in any of the annuities? Which ones, if any? Why?

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

See similar textbooks

Similar questions

Answer the Promblem correctly show your Solution. My cousin , Hershey , is a newlywed public school teacher who plans for the education of her future children . Initially , at the beginning of each month , 10 000.00 Php was deposited for 8 years in a bank in Orani . At the end of the month , the investment collects 9% of annual interest and is compounded monthly . After the last deposit , how much is in the account ? (I just need the Solution) Answer: After the last deposit, Hershey's account has 1 398 561.64 Php
son.3
ook ences Chris Seals has just given an insurance company $62,525. In return, she will receive an annuity of $7,458 for 12 years. a. At what rate of return must the insurance company invest this $62,525 to make the annual payments? (Use a Financial calculator to arrive at the answers. Round the final answer to 3 decimal places.) Rate of return b. What rate of return is required if the annuity is payable at the beginning of each year? (Use a Financial calculator to arrive at the answers. Round the final answer to 2 decimal places.) Rate of return
Corey received a 30 year loan of $345,000 to purchase a house. The interest rate on the loan was 5.00% compounded semi-annually. Question 5 of 6 a. What is the size of the monthly loan payment? $0.00 Round to the nearest cent SUBMIT QUESTION SAVE PROGRESS
2. (a) A college student, Amy, decides to fund a retirement account with $2000 per year for 8 years, with the first deposit made one year from today. The rate of return will be 10%. How much will she have in her account when she retires in 40 years? (b) Amy’s friend, Dacio, decides he will start funding his retirement account 8 years from now (first payment in 9 years). He then will invest $2000 each year for 32 years. If his rate of return is 10%, how much will he have when he retires in 40 years?
5-23. (Solving for Present Value with Annuities) Angus McDonald, a third-year accounting student studying in Scotland, receives a call from an insurance agent, who believes Angus is an older man ready to retire from teaching. He talks to him about several annuities that he could buy that would guarantee him an annual fixed income. The annuities are as follows: INITIAL PAYMENT INTO ANNUITY (AT I = 0) DURATION OF ANNUITY (YEARS) 12 AMOUNT OF MONEY RECEIVED PER YEAR ANNUITY $40,000 $7.500 B $70,000 $8,500 25 C $80,000 $9,500 20 If Angus could earn 12 percent on his money by placing it in a savings account, should he place it instead in any of the annuities? Which ones, if any? Why? 5-24. (Loan amortization) Mr. Dayvos Bay has just purchased a new house for $300,000, He paid $30,000 down payment and agreed to pay the rest over the next 25 years in 25 equal end-of-year payments plus 10 percent compound interest over the unpaid balance. What will these equal payments be? 5-25. (Solving for…
Solutions sent me all part and typing work only
Chapter 4, Question 9. Please see attached
Answer the Situation below correctly show your complete solution.I already provided the answer I just need the SOLUTION.( Annuities ) Situation: My cousin , Hershey , is newlywed public school teacher who plans for the education of her future children. Initially , at the beginning of each month , 10 000.00 Php was deposited for 8 years in a bank in Orani. At the end of the month , the investment collects 9 % of annual interest and is compounded monthly. After the last deposit , how much is in the account ? Answer: After the last deposit, Hershey's account has 1 398 561.64 Php.
Explain your answer
Ann and Tom want to establish a fund for their grandson's college education. What lump sum must they deposit at a 10% annual interest rate, compounded quarterly, in order to have $30,000 in the fund at the end of 10 years? Question content area bottom Part 1 They should deposit $enter your response here. (Round up to the nearest cent.)
Determine the kind of annuity used in the following situations. Then, solve the problem. Show your neat and complete solution. 1. Your dad deposits P 10,000 every 3 months for 7 years in an account paying 4% compounded quarterly.How much will she have in his account at the end of 7 years assuming no withdrawals were made?

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS