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 have $19, 500 in 6 years for a dream vacation. If you can earn an interest rate of .2…

A: The concept of TVM refers to the interest-earning capacity of money because money earned earlier is…

Q: A company wants to determine how much it should pay to purchase a particular ordinary annuity today.…

A: Formula for finding PV  PV=Payment per month*[{1-{1+interest rate)^(-Time period)}}/interest rate]…

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 insurance company offered you an annuity that pays you $100 at the end of each year. The life…

A: GIVEN, A= $100 N=10  R=8%

Q: You have decided to buy an annuity from a life insurance company that provides an annual payment of…

A: An annuity is a financial product or investment contract that provides a series of regular payments…

Q: When you retire, you plan to draw $50,000 per year from your retirement accounts, which will be…

A: Annuity is the no. of payments which are equal in size and made in equal interval of time. Person…

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: Your investment advisor wants you to purchase an annuity that will pay you $81,491 after 10 years.…

A: The present value of an annuity refers to the value of the future payments on the current date…

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 have just won the lottery and took a lump sum payout. After talking with a financial adviser you…

A: Present value of $16,000: Present value: $376,205.407024

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: ou want to come up with a plan to save for retirement. You will contribute to your retirement…

A: Due to compounding of interest large amount of interest is accumulated over the long period of time…

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

A: Maximum you should pay for this annuity is $ 45,668/.Explanation:

Q: You just read about an opportunity to purchase an annuity that pays $1,000 at the end of each of the…

A: Annuity = a = $1000Time = t = 10 YearsInterest Rate = r = 7%

Q: 3. If the required rate of return is 17 percent, what is the current value of the stock if dividends…

A: This is a case of two stage growth model. First dividend grows at a super normal rate, then the…

Q: What will be the value in your account at the end of Year 30?

A: Future Value of Annuity: It represents the future worth of the annuity payments made for a given…

Q: Suppose that you’d like to retire in 40 years and you want to have a future value of $ 900000 in a…

A: APR: The annual interest rate that is charged to the borrowers is known as the annual percentage…

Q: Suppose you find an annuity that pays 8% annual interest, compounded annually. If you invest in this…

A: Annuity refers to the amount of installment that is paid regularly in a specific time gap and for a…

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

A:

Q: a) You deposit $200 monthly into an annuity with the goal of accumulating $180,000 after 30 years.…

A: “Since you have posted multiple questions, we will provide the solution only to the first question…

Q: retire at age 60. Furthermore, you would like to have a retirement fund from which you can draw an…

A: Future value is the amount of deposit done and plus amount of compounding interest accumulated over…

Q: Find the amount needed at maturity to generate $1,150 per month interest, if they can get  7 1 4%…

A: Computation of Amount needed at maturity to generate $1,150 per month at 7.25% interest compounded…

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: 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 have an opportunity to buy an annuity that pays $3,500 at the end of each year for 6…

A: Present Value of Annuity=Annuity×1-11+ratetimerate

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 offered an annuity that will pay $4,250 per quarter for 8 years (first payment made today).…

A: Annuity worth refers to an amount required today for the fulfillment of payment of all series of…

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: ou plan to retire in 30 years and plan on saving $15,000 annually, starting next year, for the next…

A: The time value of money is a foundational principle in finance that takes into account the effect of…

Q: You plan to make annual deposits of $5,000 per year at the beginning of each year into your…

A: A study that proves that the future worth of the money is lower than its current value due to…

Q: Your insurance company offered you an annuity that pays you $100 at the end of each year. The life…

A: PV computes the existing value of future benefits by discounting future cash flows with a given…

Q: You are offered an annuity that will pay $11,000 per year for 24 years (the first payment will occur…

A: As per our guidelines we are supposed to answer only one question (if there are multiple questions…

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…