After consulting with your financial advisor, you figured that you need $9,000 per year for your living during 35 years of the retirement period. You consider buying an annuity contract that will pay $9,000 at the end of every month. Assuming a rate of return of 12%, how much do you need today to buy the ordinary annuity contract?

Q: You want to buy a $260,000 home. You plan to pay $26000 as a down payment, and take out a 30 year…

A: When a person does not have enough money to buy any assets, he would consider taking a loan. The…

Q: After consulting with your financial advisor, you figured that you need $9,000 per year for your…

A: Retirement fund planning is a strategic financial process aimed at ensuring a secure and comfortable…

Q: Your investment advisor wants you to purchase an annuity that will pay you $35,000 per year for 10…

A: An annuity is a series of equal payments. It is a financial instrument that guarantees an income for…

Q: You want to buy a $240,000 home. You plan to pay 20% as a down payment, and take out a 30 year loan…

A: Home value = $240,000 Down payment = $48,000 (i.e. $240,000 * 0.20) Monthly period (n) = 360 (i.e.…

Q: Assume that you contribute $150 per month to a retirement plan for 20 years. Then you can increase…

A: Future value refers to the value an investment or cash flow is expected to grow to at a specific…

Q: After carefully exmaining your budget, you determine you can manage to set aside $350 per year. You…

A: Introduction: Future Value of Annuity Due: Future value: The value of an investment made today, with…

Q: You planned to borrow $575,000 for a house at 2.9% interest for 30 years.  You find a house that you…

A: A loan is a sum of money obtained from outside sources such as banks and repaid over time in fixed…

Q: A new investment opportunity for you is an annuity that pays $800 at the beginning of each year for…

A: Beginning of period Annuity Annuity Amount = 800 Time Period (N) = 3 years Rate = 5.5%

Q: You have a chance to buy an annuity that pays $50,000 at the beginning of each year for 15 years.…

A: Present value means today’s value of money you expect to receive or pay in future.   PV = PMT…

Q: An investor is considering an annuity that pays $40,000 per year for four years.  1. Assuming the…

A: (answer of first 3 parts, please specify if any other part is required) We can compute the present…

Q: You want to buy a house within 3 years, and you are currently saving for the down payment. You plan…

A: The FV of an investment refers to the cumulative worth of the investment's cash flows at a future…

Q: You want to buy a home in 5 years, and you think at that time you will be able to afford to buy a…

A: Monthly payment refers to an amount that is being paid at every month for the repayment of the…

Q: You are saving for a Porsche Carrera Cabriolet, which currently sells for nearly half a million…

A: Present value is the current value of a future amount that is to be received or paid out.     Future…

Q: Suppose you are in charge of annuities for a life insurance company. A customer comes in and wants…

A: Annuity amount =1,000,000 Lets assume Remaining Life =55 years Life in months =660 Interest rate 7%…

Q: For your retirement, you want to live on 19,000 per month while you are retired. Interest rates…

A:

Q: You are looking at two investment options, A and B. Investment A is a 13-year annuity that needs an…

A: Compounding refers to the ability of an investment to generate earnings, which are then reinvested…

Q: Assume that Social Security promises you $34,000 per year starting when you retire 45 years from…

A: We have to find the PV of an annuity immediate, starting 45 years from today. All the relevant…

Q: After consulting with your financial advisor, you figured that you need $100,000 per year for your…

A: An annuity is a series of constant payment of a sum, yielding a certain rate of return.Information…

Q: Assume that you contribute $300 per month to a retirement plan for 15 years. Then you are able to…

A: An annuity is a way of fulfilling our future goals by investing a fixed amount for a fixed interval…

Q: Suppose you are 30 years old and would like to retire at 60. Moreover, you would like to to have a…

A: Using excel PMT function

Q: You are looking to invest your savings and want to earn a 10% annualized return. You can choose from…

A: The idea of present value, in finance, is to determine the worth of future cash flows or a series of…

Q: You want to buy a house within 3 years, and you are currently saving for the down payment. You plan…

A: Period = 3 yearsGrowing annuity = $9000Growth rate = 20%Interest rate = 11%

Q: You buy an annuity that will pay you $24,000 a year for 25 years.  What is the value of this annuity…

A: Present value of annuity = Annuity amount * PVA of $1

Q: Your insurance agent is trying to sell you an annuity that costs $55,000 today. By buying this…

A: Compound = Monthly = 12Present Value of Payment = $55,000Monthly Payment = $285Number of Payment =…

Q: You can afford to pay $15,000 at the end of each of the next 30 years to repay a home loan. If the…

A: Present value of annuity is the current worth of future annual cash flows over a period of time at a…

Q: Suppose you want to buy a house today that costs $139022. The bank requires you to make a 20% down…

A: Solution:-When an amount is borrowed, it can either be repaid as a lump sum payment or in…

Q: You decide to set aside $120 a month for your future. Assuming a real interest rate of 7.5%, how…

A: The question is based on the concept of future value calculation of annuity payment.  Formula as,…

Q: You’re buying your first house for $180,000, giving $35,000 as down payment. The amount you will…

A: The amount of interest payable over the term of the loan and the loan amount due is equal to the…

Q: You want to buy a $214,000 home. You plan to pay 10% as a down payment, and take out a 30 year loan…

A: a) Mortgage amount = Cost of home - Down payment  Monthly payments are calculated using excel PMT…

Q: You are offered an annuity that will pay $10,000 a year for ten years (that is, ten payments), but…

A:

Q: You expect to receive $150,000 per year on a contract that will last 5 years. You are trying to…

A: Present value of future cash inflows will be equal to the worth of contract today.   Worth of…

Q: You are looking at two investment options, A and B. Investment A is a 15-year annuity that needs an…

A: Here, To Find: Part A. Future value of Investment A and the present value of investment B =? Part…

Q: You want to buy a $194,000 home. You plan to pay 20% as a down payment, and take out a 3.3% APR loan…

A: We will only answer the first three subparts for the remaining subparts kindly resumit the whole…

Q: Assume that you contribute $150 per month to a retirement plan for 20 year Then you can increase the…

A: Retirement plan refers to an amount that is being invested at every period for the purpose of…