A company offers a life annuity-due which makes the following annual payments:• $2000 at ages 40 to 47;• $3850 at ages 48 to 53;• $5450 at ages 54 to 60.Consider the following life table:Age (x)Age (x)Age (x)407013647640285458667416935648627925557908426895449619825657128436726850610555756038446608851597555855658456573352594005954953466474853590616054839Compute the expected present value of this life annuity-due if it is purchased by an annuitant aged 50 using an effective annual interest rate i = 0.052:

An annuity is a financial product that involves a series of regular cash flows or payments received…

A company offers a life annuity-due which makes the following annual payments: $2000 at ages 40 to 47; $3850 at ages 48 to 53; $5450 at ages 54 to 60. Consider the following life table: Age (x) 40 41 42 43 44 45 46 Ix 70136 69356 68954 67268 66088 65733 64748 Age (x) 47 48 49 50 51 52 53 lx Age (x) 54 55 56 57 58 64028 62792 61982 61055 59755 59400 59061 59 60 lx 58667 57908 57128 56038 55658 54953 54839 Compute the expected present value of this life annuity-due if it is purchased by an annuitant aged 50 using an effective annual interest rate i = 0.052:

A company offers a life annuity-due which makes the following annual payments: $2000 at ages 40 to 47; $3850 at ages 48 to 53; $5450 at ages 54 to 60. Consider the following life table: Age (x) 40 41 42 43 44 45 46 Ix 70136 69356 68954 67268 66088 65733 64748 Age (x) 47 48 49 50 51 52 53 lx Age (x) 54 55 56 57 58 64028 62792 61982 61055 59755 59400 59061 59 60 lx 58667 57908 57128 56038 55658 54953 54839 Compute the expected present value of this life annuity-due if it is purchased by an annuitant aged 50 using an effective annual interest rate i = 0.052:

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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Similar questions

Coice 52,26,39 ,78
If $650 000 is saved for retirement, what rate of interest, compounded monthly, will provide payments of $3750 every month for the next 25 years? Select one: O a. 14.606797% O b. 0.811327% O c. 4.888702% O d. 4.867963%
Use the following Annuity Table for questions 1 through 6. Future Value of Ordinary Annuity of 1 Period 5% 6% 8% 10% 12% 11.000001.000001.000001.000001.00000 22.050002.060002.080002.100002.12000 33.152503.183603.246403.310003.37440 44.310134.374624.506114.641004.77933 55.525635.637095.866606.105106.35285 66.801916.975327.335927.715618.11519 78.142018.393848.922809.4871710.08901 89.549119.8974710.6366311.4358912.29969 911.0265611.4913212.4875613.5794814.77566 1012.5778913.1807914.4865615.9374317.54874 Present Value of an Ordinary Annuity of 1 Period 5% 6% 8% 10% 12% 1.95238.94340.92593.90909.89286 21.859411.833391.783261.735541.69005 32.723252.673012.577102.486852.40183 43.545953.465113.312133.169863.03735 54.329484.212363.992713.790793.60478 65.075694.917324.622884.355264.11141 75.786375.582385.206374.868424.56376 86.463216.209795.746645.334934.96764 97.107826.801696.246895.759025.32825 107.721737.360096.710086.144575.65022 Use the following…
Ee 278.
If a company places $200 in a deposit account that pays 7% interest compounded annually, how much will the deposit be at the end of 5 years? Question 11 options: 1) $270.00 2) $217.00 3) $200.00 4) $280.60
Find the periodic payment for each of the following scenarios, where m is the periodic deposit and r is the interest rate. Future compounding time periodic interest in Value frequency deposit (m) earned years $ $200,000 5% annually 10 12.5779 15905.29 $ $250,000 7.8% semiannually 11 34.6003 7225.43 $ $125,000 3.7% quarterly 15 120.3921 1038.46 $ $ $225,000 3% monthly 15 $ $175,000 7.5% weekly 12 A
Find the value of the annuity and the interest. nt P[(1 +n' -1] A = A = P =- nt Periodic Deposit: $2500 at the end of every three months Rate: 4.5% compounded quarterly Time: 9 years O A. $79,006; $10,994 O B. $110,204; $20,204 O C. $332,426; $242,426 O D. $106,505; $16,505
Find the Present value of perpetuity of OMR 560 made at the beginning of each month if the interest is 13.5% compounded monthly Select one: a. OMR 60337.78 b. OMR 50237.78 c. OMR 50337.78 d. OMR 50347.78
A company will receive payments of $1,500 per year for the next four years under a subscription contract. The first payment will be made at the beginning of the contract. Assuming an annual interest rate of 3% is appropriate, the present value of an ordinary annuity is 3.71710 x $1,500 = $5,576, and the present value of an annuity due is 3.82861 x $1,500 = $5,743. Which amount must the company record for this sale in accordance with generally accepted accounting principles (GAAP) if collection is reasonably assured? $0 $5,576 $6,000 $5,743
Use the table below to answer the following questions: Present Value of an Annuity of 1 Future Value of an Annuity of 1 Period 4% 5% 8% 10% 4% 5% 8% 10% 4 3.6299 3.5460 3.3121 3.1699 4.2465 4.3101 4.5061 4.6410 5 4.4518 4.3295 3.9927 3.7908 5.4163 5.5256 5.8666 6.1051 6 5.2421 5.0757 4.6229 4.3553 6.6330 6.8019 7.3359 7.7156 7 6.0021 5.7864 5.2064 4.8684 7.8983 8.1420 8.9228 9.4872 8 6.7327 6.4632 5.7466 5.3349 9.2142 9.5491 10.6366 11.4359 9 7.4353 7.1078 6.2469 5.7590 10.5828 11.0266 12.4876 13.5795 10 8.1109 7.7217 6.7101 6.1446 12.0061 12.5779 14.4866 15.9374 11 8.7605 8.3064 7.1390 6.4951 13.4864 14.2068 16.6455 18.5312 Bobby gets a yearly alimony payment from his ex-wife and wants to save enough to put a 15% down payment on a home in 4 years. Median homes go for $950,000 and are expected to appreciate at the inflation rate of 3%. How much should Bobby put away into an investment each year if he can get a 8% return a year?…
Present value of an ordinary annuity. Fill in the missing present values in the following table for an ordinary annuity:
Assuming a 360-day year, when a $11,392, 90-day, 10% interest-bearing note payable matures, total payment will be a. $11,677 Ob. $12,531 Oc. $1,139 Od. $285 That's Built PlueA

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