An aunt gifts you with $12,000, but only after you invest it for one year. She gives you two choices. 1. Invest the entire sum at 4.2% compounded monthly. 2. Invest $1000 at 7.1% each month in an annuity that pays every month. (a) What is the future value of the money invested with method 1? (b) How much interest is earned with method 1? (c) What is the future value of the money invested with method 2? (d) How much interest is earned with method 2? (e) Which method would you choose?

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A: Variables in the question:Annual payment (P)=$1000Growth (g)=8%Interest rate(r)=11%

Q: Gina has $500,000 accumulated in her RRSP and intends to use the amount to purchase a 20-year…

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A: 2. The maximum  to contribute can be calculated as follows : Results obtained :

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A: Solution:- When an amount is invested somewhere, it earns interest on it.  The amount initially…

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Q: To save for a down payment on a home, you invest in an annuity that pays 7.0% annual interest,…

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

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Q: A pleasant gentleman has advised you via email that you are entitled to a $1 million inheritance.…

A: Calculate the retirement money as follows:MS-Excel --> Formulas --> Financials -->  FV

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A: Present value of Annuity = Annuity ×1-(1+r)-nrwhere,r=interest raten=number of periods

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

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A: Given information, Annuity Amount = $700 Time Period = 4 years  Interest rate per year = 6%

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A: RATE 15.25% YEARS 24 PMT (MONTHLY PAYMENT) 6000 FUTURE VALUE $0 FIRST PAYMENT IMMEDIATE…

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