A life insurance company will sell a 20 year annuity paying $1,600 at the end of each month for $175,000. What annual compounded nominal rate of interest will the annuitant earn?

Q: valued at $15000. What is

A: To find the annual interest rate for the annuity, we can use the present value formula for an…

Q: A 11-year annuity pays $1,400 per month, and payments are made at the end of each month. The…

A: The idea of the time value of money (TVM) holds that a quantity of income is valued sooner than it…

Q: A personal account earmarked as a retirement supplement contains $292,400. Suppose $250,000 is used…

A: Annuity refers to the series of payment in equal interval of time for certain time period.  For…

Q: Bill Jones plans to deposit $2100 at the end of every 6 months for the next 20 years into an annuity…

A: Calculation of the total value of the annuity at the maturity is shown below: Hence, the total…

Q: n annuity pays $4152 per month, and payments are made at the end of each month. If the interest rate…

A: Present value of annuity can calculated by using Excel PV function.

Q: Assume that you make monthly payments of $ 625 into an ordinary annuity paying 4% compounded…

A:

Q: What will be the monthly payment on a home mortgage of $75,000 at 12% interest, to be amortized over…

A: Loan amount (P) = $75,000 Interest rate = 0.12 Monthly interest rate (i) = 0.01 (i.e. 0.12 / 12)…

Q: An insurer needs to make the following annuity payments to an individual: £445 paid at the end of…

A: To calculate the present value of the annuity payments, we need to discount each payment back to the…

Q: You invest in an ordinary annuity $3,000 annually at 7% annual interest. What is the future value of…

A: Given:  Amount = 3000 r = 7% n = 5 years

Q: An insurance company offers a retirement annuity that pays 100,000 per year for 15 years, gorwing at…

A: An Annuity is a stream of regular periodic payments made or received for a specified period of time…

Q: What is the future value of a 12%, 10 year annuity due that pays 1,000 each year.

A: The objective of the question is to calculate the future value of an annuity due. An annuity due is…

Q: To save for retirement, you decide to deposit $100 at the end of each month in an IRA that pays 5.5%…

A: Annuity refers to the periodic payments or receipts over a specified period of time.

Q: A personal account earmarked as a retirement supplement contains $242,300. Suppose $200,000 is used…

A: The interest rate is 6%, compounded quarterly. The interest rate per quarter will be (6%/4) = 1.5%.…

Q: What is the present value of an annuity of $4000 received at the beginning of each year for the…

A: The present value of an annuity is an estimate of the present worth of future annuity payments based…

Q: What is the future value of a 6%, 10-year ordinary annuity that pays $200 each year?  If this were…

A: The future value of annuity is calculated using the formula below:

Q: An annuity due pays $17,250 every year for the next 6 years and earns a 7.34% annual return. How…

A: Annuity Due = a = $17,250Time = t = 6Interest Rate = r = 7.34%Type Payment = due = at the beginning

Q: What is the future value of a 7%, 5-year annuity that pays $300 at the beginning of each year?

A: Given: Rate: 7% Annuity =300      Number of years = 5

Q: A 20-year annuity pays $1,500 monthly, and payments are made at the end of each month. If the…

A: Monthly payments = $1500Period = 20 yearsInterest rate :First 10 years = 6.25%Next 10 years = 5.50%

Q: An accountant is entitled to received 35,000 pesos at the beginning of each year for 18 years. What…

A: The present value means the present value of the payment of the future. It generally tells us what…

Q: For $150,000, Continental Life Insurance Co. will sell a 20-year annuity paying $1200 at the end of…

A: An annuity is usually used in the retirement funds where fixed future amounts are paid in exchange…

Q: A perpetuity pays $100 each year, with the first payment scheduled two years from now. Assume that…

A: Amount of $100 will be paid by a perpetuity and that will be started from year 2 (two year from…

Q: If you want to be paid from a 15 year ordinary annuity with a guaranteed rate of 4.277% compounded…

A: Annual payment (C) = $10,000 Period (n) = 15 Years rate (r) = 0.04277 (i.e. 4.277%) Present value or…

Q: Annuity will pay $200 at the end of each of the next 10 years and $600 at the end of each of the…

A: The Present Value of Annuity (PVA) is a financial concept that calculates the current worth of a…

Q: What is the present value of a Annuity where the investor receives $10,000 every year for 10 years…

A: Annuity = a = $10,000Time = t = 10 yearsInterest rate = r = 4.5%

Q: What is the future value of a $590 annuity payment over four years if interest rates are 8 percent

A: An annuity refers to a series of cash flow that occurs on a periodic basis. Here $590 is occurring…

Q: Safe Insurance Company offers a 40-year annuity. The annuity pays $1,000/year at the end of each…

A: To calculate the present value of the annuity, we can use the formula: PV = C x ((1 - (1 + r)^-n) /…

Q: n the following ordinary annuity, the interest is compounded with each payment, and the payment is…

A: Annuity refers to the series of payments at regular intervals over a period of time. Future value of…

Q: An investor desires to deposit with a trust company a sum just sufficient to provide his family with…

A: The present value of the annuity is the current worth of a cash flow series at a certain rate of…

Q: A personal account earmarked as a retirement supplement contains $292,100. Suppose $250,000 is used…

A: Present value is an estimate of the present value of future cash values ​​that may be received at a…

Q: An annuity pays $1000 at the end of each year for 4 years and then $2000 at the end of each year for…

A: Required :The discounted value of these cash flows.

Q: American General offers a 14-year annuity with a guaranteed rate of 4.17% compounded annually. How…

A: Present value is an estimate of the present value of future cash values that may be received at a…

Q: n the following ordinary annuity, the interest is compounded with each payment, and the payment is…

A: In this we need to calculate monthly payment required for one million future value.

Q: In the following ordinary annuity, the interest is compounded with each payment, and the payment is…

A: It can be solved using NPER function in excel. =NPER(rate,pmt,pv,[fv],[type]) Rate The interest…

Q: What iS the fair market price today for an annuity that pays you $350 at the beginning of each month…

A: Annuity refers to the series of payment at regular interval for certain period.

Q: You are considering an annuity which costs $120,000 today. The annuity pays $13,255 a year at an…

A: Given: Present value of Annuity=$120000Annuity =$13255Interest rate (r)=9.75%