An annuity purchased for $175,000 pays $4,000 at the end of every quarter. How long will the payments continue if the funds earn 4%compounded semiannually? (Do not round intermediate calculations and round up the number of payments, n, to the next wholenumber.)It will beyearsmonths

Compounding refers to the process where the interest is determined on the principal and interest…

Answered: An annuity purchased for $175,000 pays…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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An ordinary annuity pays 8.28% compounded monthly. (A) A person deposits $100 monthly for 30 years and then makes equal monthly withdrawals for the next 15 years, reducing the balance to zero. What are the monthly withdrawals? How much interest is earned during the entire 45-year process? (B) If the person wants to make withdrawals of 1,500 per month for the last 15 years, how much must be deposited monthly for the first 30 years? (A) The monthly withdrawals are $ (Round to the nearest cent as needed.)
Find the periodic payments PMT necessary to accomulate the given account in an annuity account. (Assume end-of-period deposits and compounding at the same intervals as deposits. Round your answer to the nearest cent.) $20,000 in a fund paying 2% per year, with quarterly payments for 20 years. PMT = $
A thirty-year annuity has end - value of the annuity if i = 3 % - of month payments. The first year the payments are each $ 120. In subsequent years each payment increases by $5 over what it was the previous year. Find the present (Round your answer to the nearest cent.)
Find the periodic payments PMT necessary to accumulate the given amount in an annuity account. (Assume end-of-period deposits and compounding at the same intervals as deposits. Round your answer to the nearest cent.) $90,000 in a fund paying 3% per year, with monthly payments for 10 years, if the fund contains $30,000 at the start
A 15-year annuity pays $1,750 per month, and payments are made at the end of each month. If the APR is 9 percent compounded monthly for the first seven years, and APR of 6 percent compounded monthly thereafter, what is the value of the annuity today? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Present value
What is the accumulated value after five years of payments of $20000 made at the beginning of each year if interest is 7% compounded quarterly? Please, note that I think this is a question of Annuities, and I believe time would be 20 (5 years compounded quarterly -> 4x a year) Isn't this a General Annuity Due question, where payments are made at the beginning of the payment intervals, and the payment and compounding frequencies are unequal.
Recently, More Money 4U offered an annuity that pays 5.1% compounded monthly. If $1,706 is deposited into this annuity every month, how much is in the account after 10 years? How much of this is interest? Type the amount in the account: $ (Round to the nearest dollar.)
An annuity with a cash value of $10,400 pays $260 at the beginning of every month. The investment earns 8% compounded monthly. (a) How many payments will be paid? (b) What is the size of the final annuity payment? (a) The number of payments is (Round up to the nearest whole number.) (b) The size of the final payment is $. (Round to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
I need the answer as soon as possible
The compounding periods and the payment periods are the same for an annuity and for an amortization. Determine the present value of the annuity that will pay the given periodic payments. (Round your final answer to two decimal places.) Periodic payments of $2400 annually for 13 years. The interest is 4% compounded annually.
If you have a 13-year annuity paying $305 quarterly in 5 years when interest is 3.25% compounded semi-annually, what is the number of missed payments? Treat the deferred annuity as an ordinary annuity with the first annuity payment at the 5-year mark.

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An annuity purchased for $175,000 pays $4,000 at the end of every quarter. How long will the payments continue if the compounded semiannually? (Do not round intermediate calculations and round up the number of payments, n, to the next funds earn 4% whole number.) It will be years [ months