A man has just taken retirement at age 50. He will receive 5,000 monthly in retirement benefits until he turns 60 and begins receiving Social Security benefits at which time the pension declines to only 3,000 per month for 5 years. What is the present value of his pension if he uses a rate of 7%?

Q: You desire an annual retirement income of $200,000 in your You expect to live for 30 years past…

A: INTRODUCTION: To accumulate is to gather or raise the quantity of something. In finance,…

Q: moid has just tume sume a return that is compounded annually Present val in a ect one: a. between 5…

A: The annuity pays the annual payment for given period of time and give interest rate and the amount…

Q: Lesson: Present Value of Ordinary Annuity A man has just taken retirement at age 50. He will…

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

Q: The stock price of BAC is currently $120 and a put option with strike price of $120 is $5. A trader…

A: Here,Current price is $120Strike price is $120Premium is $5Strategies:-1. 300 Shares of BAC2. 3…

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A: The time value of money is a concept in finance that takes into account the effect of compounding to…

Q: How many payments can Gabriel expect to receive in retirement? He expects to earn 7.04 percent in…

A: The concept of TVM refers to the interest-earning capacity of money because which money received…

Q: Mr. X is going to retire soon. His employer gives him two options; a. An annual pension of Rs.…

A: Annuity payments are the series of payments that an individual makes on a regular basis into an…

Q: You have just made your first $5461 contribution to your retirement account. Assume you earn a…

A: Simple interest is the amount of interest earned on saving or investing some particular amount. This…

Q: You have just turned 22 years old, received your bachelor's degree, and accepted your first job. Now…

A: Present Value of Ordinary Annuity refers to the concept which gives out the discounted or today's…

Q: Henry would like to have a retirement income of $3,000 per month (month-end payments). How much must…

A: We need to use present value of ordinary annuity(payment due at end of period) formula to solve this…

Q: A couple will retire in 50 years; they plan to spend about $26,000 a year (in current dollars) in…

A: Years to retire = 50Retirement period = 25 yearsAnnual expense during retirement = $26,000Interest…

Q: Suppose your mother has worked for 40 years and has accumulated  $1,000,000. She wishes to begin…

A: The present value of the amount represents the current value of the future cash flows. The…

Q: Assume that your father is now 50 years old, plans to retire in 10 years, and expects to live for 25…

A: To calculate how much your father must save during each of the next 10 years to meet his retirement…

Q: After retirement, you expect to live for 25 years. You would like to have $91,000 in income each…

A: In this question, we are required to determine the amount we need to have to receive income for 25…

Q: Your uncle is about to retire, and he wants to buy an annuity that will provide him with $95,000 of…

A: Annual Payment (P) = $95,000Interest rate (r) = 4.70% or 0.047Number of years (n) = 20Payment timing…

Q: A person joins a pension plan at age 35. How much will she have to pay into the pension fund each…

A: The question is based on the concept of Annuity in Financial Management.

Q: per year and the cash value is expected to be $1.5 million at retirement. Approximately how many…

A: The given problem can be solved using NPER function in excel. NPER function computes no. of years/…

Q: en you retire at 65 you can take either $500,000 in cash or an ordinary annuity that promises to pay…

A: Today value=PV=$500000PMT=annuity=$47488.98Rate-r=8%Required =number of years

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A: The answer provided below has been developed in a clear step by step manner.Present Value of a…

Q: A self-employed person deposits $2,000 annually in a retirement account (called a Keogh or H.R. 10…

A: The value of current asset for the future date based on the growing interest will be known as the…

Q: Assume that you are 30 years old today and that you are planning on retirement at age 65. Your…

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A: The concept of time value of money will be used here. We compound cash flows to compute their future…

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A: Weekly contribution (C) = 75Weekly discount rate (r) = 0.00144 (i.e. 0.075 / 52)Weekly period of…

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Q: Assuming you are considering investing in a defined contribution pension plan. You do not know how…

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Q: André is looking ahead to his retirement. He wants to have $580,000 in his savings account when he…

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Q: 1. Your financial planner has advised you to initiate a retirement account while you are still…

A: The time value of money is the concept that is used by the companies to determine the present worth…

Q: A couple will retire in 50 years, they plan to spend about 000 a year (in current dollars) in…

A: Annual savings refers to an amount that is kept aside or invested in some plan for the purpose of…

Q: You plan to make your first $6,470 contribution to your individual retirement account in 2 years.…

A: Future value refers to the value of a current asset at some future date affected by interest rate,…

Q: A self-employed person deposits $2,000 annually in a retirement account (called a Keogh or H.R. 10…

A: The future value formula can be used to derive the future value of a present sum or a stream of…

Q: A couple will retire in 50 years; they plan to spend about $32,000 a year (in current dollars) in…

A: Annual savings refers to an amount that is kept aside or invested in some plan for the purpose of…

Q: You have just made your first $1,500 contribution to your retirement account. Assume you earn a…

A: FV = PV(1 + r)t FV= Future Vale PV = Present Value r= rate of interest t = time in years

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A: If you die you want to provide your family with = 50000 - 0.22*50000 = 39000$39000 every year for 15…

Q: Your father is about to retire, and he wants to buy an annuity that will provide him with $52,000 of…

A: Annuity = a = $52,000Time = t = 25Interest rate = r = 5.95%Payment Type = at the beginning

Q: Suppose you are 40 years old and plans to retire in exactly 20 years.  Twenty one years from now you…

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Q: our friend has just celebrated her 30th birthday and accepted her first job. She must now decide how…

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Q: Assume that you are 30 years old today, and that you are planning on retirement at age 65. Your…

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A: Note: It is a case where no question is specified to solve among the multiple questions posted, so…

Amortized Loans

The term "amortization" refers to spreading the value of a loan or a debt over a series of regular payments or installments comprising of both the principal and interest amount. It generally involves the process where in the value of a loan or an intangible asset is written down over its maturity period.