A retiree is offered the choice of two continuous annuities: − A life annuity, paying 30,000 per year. − A life annuity with a 5-year certain period, i.e., an annuity paying benefits for life, but with a minimum pay-out period of 5 years. The benefit amount for the second annuity is chosen so that the expected present value of the two annuities is the same. Given ? = 0.02 and ? = 0.07, determine the annual benefit amount of the second annuity, ??

Q: If lottery winnings of Q are invested now at an interest rate of 9%, how much is available to help…

A: If lottery winnings of Q are invested now at an interest rate of 9%, how much is available to help…

Q: Find what simple interest rate will be necessary for Sonny to get a 40% return on a $500 investment…

A:

Q: 3. * A savings plan requires an investor to pay 10 installments, each one of $500, due at the end of…

A: Yearly periodic payment is : Term duration is :The effective annual interest rate is : The aim is to…

Q: Find the saving balance after 25 years with APR 3.5% and monthly payments of $400

A: Given formula is as follows Where A is the final amount PMT is the monthly payment n is the number…

Q: Use a calculator to evaluate the present value of an annuity formula P = m   1 −   1 +  r n   −nt…

A: Given formula: P=m*1-1+rn-ntrn Given information: n=12 m=$1050 t=9 yr r=6%.

Q: If you can't start saving that early in your careerat the age of 24until you retire at 64, you will…

A:

Q: Suppose $100 is withdrawn at the EOY 2026, emptying an account that earns 7% interest, compound…

A:

Q: Payments are deposited in a fund at the beginning of each month for 4 years. The monthly deposit in…

A: Given that monthly deposit in a year is 20n; n=1, 2, 3, 4 rate if interest is 12% time is 4 years so…

Q: find the future value of an investment of $1200 invested at 6% interest compunded continuously for 5…

A:

Q: 1000 is deposited in a fund A which earns an effective annual rate of 5%. At the end of each year,…

A:

Q: Suppose you have a $175,000 30-year mortgage with a 4.5% interest rate on the loan. c. If you pay…

A: Given that, loan amount P=$175,000, monthly payment PMT= $975, Interest rate r=4.5% and frequency of…

Q: Find the future value of an ordinary annuity if payments are made in the amount R and interest is…

A:

Q: The principal P is borrowed and the​ loan's future value A at time t is given. Determine the​ loan's…

A:

Q: Find the saving balance after 15 years with an APR of 3.2% and monthly payments of $200

A:

Q: Suppose that you have $9000 to invest into an account that pays interest at a rate of 1.95%. Find…

A: Given that the investment amount P=$9000 Interest rate r=1.95%=1.95100=0.0195Number of years t=8…