An insurance and for 20 offers to annuity pay you $1,000 per quarter years. you want to earn a rate of return of 3.9% with quarterly compounding, what is the most you would be willing would be willing to pay today to obtain this annuity? If
Q: You may purchase an annuity that will pay you 300000 in income per year starting one year from now…
A: Given, Payment amount (PMT) = 300,000 Number of payments (n) = 22 Interest rate (i) = 4%
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: You have set up a life annuity with a present value of $250,000. If your life expectancy at…
A: Using the PMT function in excel
Q: Suppose you put $ 500 a month for retirement into an annuity earning 5.25% compounded monthly. If…
A: Future value is the estimated value of current assets that is discounted at an assumed rate of…
Q: How much should you be willing to pay for an annuity that begins in 3 years and pays $100 dollars…
A: The monthly discount rate, expressed as a percentage, is an important financial measure used to…
Q: What are the monthly payments you will receive if your retirement nest egg of $ 1,000,000 is in a 5%…
A: Present valueof the retirement Amount $ 10,00,000.00Interest rate5%Tenure, years20Compounding…
Q: How much would you need to deposit in the account each month?
A: Information Provided: Future value = $410,500 Years = 15 Interest rate = 6.5% Deposits frequency =…
Q: To save for a down payment on a home, you invest in an annuity that pays 7.0% annual interest,…
A: The interest earned on the annuity can be calculated with the help of future value of annuity…
Q: Suppose you put $ 525 a month for retirement into an annuity earning 5.25% compounded monthly. If…
A: An investment decision may involve regular cashflows of equal amount during successive years in…
Q: How much should you pay today for a 10 year annuity that will provide annual payments of $10,000?…
A: Annual payment = $10,000Interest rate = 4%Period of annuity = 10 years
Q: You purchase a 10-year annuity that pays you \$ 30000 / v * ear . The first payment will begin in…
A:
Q: Suppose an annuity will pay $14,000 at the beginning of each year for the next 5 years. How much…
A: Annual payment (P) = $14,000 Interest rate (r) = 6.5% Period (n) = 5 Years
Q: If you set aside $5,000 per year (i.e., one deposit of $5,000 each year) in a Roth IRA for the next…
A: As per the facts, first contribution is done after one year so it is a case of Ordinary Annuity.…
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: You purchase an annuity that will pay you $100 every three months for five years. The first $100…
A: FORMULA FOR PRESENT VALUE OF ANNUITY (FVA): PVA=A×1-1+rmm×nrm×1+rm where, A=annuity r=rate…
Q: Suppose you put $ 450 a month for retirement into an annuity earning 4.25% compounded monthly. If…
A: Future value can be referred to as the value of an underlying asset or security at a future date.…
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: 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: 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: Use the annuity formula. Show the work. As part of your retirement planning, you purchase an…
A: The future value function or concept can be used to determine the future value of a present sum or…
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 buy an annuity, which will pay you $22,000 a year for twenty years. The payments are paid on the…
A: To calculate the present value of the annuity we will use the below formula Present value =…
Q: For an ordinary annuity with 5 annual payments of $100 and a 10% interest rate, for how many years…
A: The ordinary annuity is a payment plan where the holder of the annuity receives a periodic amount at…
Q: Suppose you put $ 475 a month for retirement into an annuity earning 5.75% compounded monthly. If…
A: Ordinary annuity are the payments which are made at the end of the period.
Q: Suppose you invest in an annuity that pays 5% interest, compounded semiannually. How much will you…
A: Formula used as follows: S=R1+in-1iS=Future valuei=Interest rate per periodn=Number of…
Q: You buy an annuity that will pay you $24,000 annually for 25 years. The payments are paid on the…
A: This problem belongs to finding out the present value of annuity due. When annuity occurs in the…
Q: You are offered an annuity that will pay $5,420 per quarter for 8 years (first payment made today).…
A: The objective of this question is to calculate the present value of an annuity. An annuity is a…
Q: Your insurance company offered you an annuity that pays you $100 at the end of each year. The life…
A: An annuity is an agreement between an individual and an insurance company in which the individual…
Q: Your insurance agent is trying to sell you an annuity that costs $40,000 today. By buying this…
A: An annuity is a payment series where the investor pays a lump sum amount in exchange for future…
Q: Suppose you put $ 600 a month for retirement into an annuity earning 7.5% compounded monthly. If you…
A: To calculate the number of years, excel NPER function is used.
Q: The Eternal Gift Insurance Company is offering you a policy that will pay you and your heirs $10,000…
A: Annual Payment = p = $10,000Present Cost of Policy = pc = $285,000Time = ForeverType of Payment = At…
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- You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years. Which table will help you determine the value of your account at the end of 12 years? A. future value of one dollar ($1) B. present value of one dollar ($1) C. future value of an ordinary annuity D. present value of an ordinary annuityYour insurance agent is trying to sell you an annuity that costs $55,000 today. By buying this annuity, your agent promises that you receive payments of $285 per month for 30 years. What is the rate of return expressed as an APR on this investment? Multiple Choice O 3.91% 4.33% willSuppose you put $ 600 a month for retirement into an annuity earning 7.5% compounded monthly. If you need $ 550000 to retire, in how many years will you be able to retire?
- Find the amount (future value) of the ordinary annuity. (Round your answer to the nearest cent.) $500/week for 9 years at 3.5 % / year compounded weekly Need Help? 10 Read ItSuppose you put $ 500 a month for retirement into an annuity earning 5.25% compounded monthly. If you need $ 700000 to retire, in how many years will you be able to retire? Years =Suppose you have an opportunity to buy an annuity that pays $3,500 at the end of each year for 6 years, at a 9% interest rate. What is the most you should pay for the annuity? USE FORMULA
- An investor is considering an annuity that pays $40,000 per year for four years. 1. Assuming the first $40,000 is paid in a years time given a discount rate of 4% what should the investor pay for this annuity today? 2. Assuming the first $40,000 is paid out immediately what should the investor pay today? (Asssume same discount rate). 3. If the investor pays $130,000 today and assuming the first paymentarrives in a years time, what would this investment’s internal rate of return be? (Asssume same discount rate). 4. What would the investor pay today if the first payment arrived in 5years time? (Asssume same discount rate). 5. If the investor invests $40,000 per year at the end of the next 4 years what would this be worth in 4 years time? (Asssume same discount rate).Find the future value of an annuity due with an annual payment of $14,000 for three years at 4% annual interest using the simple interest formula. How much was invested? How much interest was earned? What is the future value of the annuity? $ (Round to the nearest cent as needed.) How much was invested? S How much interest was earned? S (Round to the nearest cent as needed.) ←Assuming an interest rate of 6.88% compute how much income you will have each month if you save $500 each month for the next 37 years and then use the accumulated money to buy an annuity of equal monthly payments for u+2 years? U=12
- if you want to be paid from a 15 year ordinary annuity with a guaranteed rate of 4.277% compounded annually, how much should you pay for one of these annuities if you want to receive annual payments of $10,000.00 over the 15 year period?You purchase an annuity that will pay you $100 every three months for five years. The first $100 payment will be made as soon as you purchases the investment. If your required rate of return is 9% , how much should you be willing to pay for this investment? Group of answer choices $1,596.82 $1,632.29 $1,759.34 $1,510.46What's the future value of a 12%, 5-year ordinary annuity that pays $700 each year? If this was an annuity due, what would its future value be? Round your answers to the nearest cent.