An ordinary annuity pays 7.08% compounded monthly. (A) A person deposits $150 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 2,000 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.)

Q: A life insurance company will sell a 20 year annuity paying $1,600 at the end of each month for…

A: Solution:-When an equal amount is paid each period at end of period, it is known as ordinary…

Q: Acme Annuities recently offered an annuity that pays 6.6% compounded monthly. What equal monthly…

A: Step 1:We have to calculate the monthly deposits to get the required amount after 15 years.We will…

Q: At the end of each month for the next ten years you will receive cash flows of $75.  If the…

A: Present value of annuity = 75{1-(1+0.072)^-120}/0.072

Q: n annuity pays $4152 per month, and payments are made at the end of each month. If the interest rate…

A: Present value of annuity can calculated by using Excel PV function.

Q: Assume that you make monthly payments of $ 625 into an ordinary annuity paying 4% compounded…

A:

Q: A personal account earmarked as a retirement supplement contains $242,300. Suppose $200,000 is used…

A: The interest rate is 6%, compounded quarterly. The interest rate per quarter will be (6%/4) = 1.5%.…

Q: PNC's 30-year annuity is scheduled to pay off a loan taken out today at a 5% annual effective…

A: given, year (n) = 30 rate = 5% first annuity at t=10, amount= $10,000 then annuity increase by $5000…

Q: An annuity due pays $17,250 every year for the next 6 years and earns a 7.34% annual return. How…

A: Annuity Due = a = $17,250Time = t = 6Interest Rate = r = 7.34%Type Payment = due = at the beginning

Q: A 20-year annuity pays $1,500 monthly, and payments are made at the end of each month. If the…

A: Monthly payments = $1500Period = 20 yearsInterest rate :First 10 years = 6.25%Next 10 years = 5.50%

Q: Lidia deposits $700 at the END of each year for 8 years in a savings account. The account pays 12%…

A: In finance, the term annuity represents a stream of cash flows that contain an equivalent periodic…

Q: Assume that you make quarterly payments of $ 750 into an annuity paying 9% interest compounded…

A: Quarterly payment = $750 Interest rate = 9% Quarterly rate = 0.09/4 = 2.25% Time =10 years Quarterly…

Q: The present value of a 4-year annuity is $47,000. The first annual cash flow occurs one year from…

A: The discount rate is 4.8%The present value of the annuity table of discount rate 4.8%.PeriodAnnuity…

Q: An annuity provides for 12 annual payments. The first payment is $100, paid at the end of the first…

A: The above example is the type of growing annuity. We need to find out the present value of this…

Q: A company wants to have $50,000 at the beginning of each 6-month period for the next 4 1/2 years. If…

A: Annuity is the regular payment to be made for specific number of years. There are two types of…

Q: At the end of each month for the next ten years you will receive cash flows of $50.  If the…

A: Annuity refers to the contract between an insurer and the insurance company in which a fixed…

Q: An annuity pays $1000 at the end of each year for 4 years and then $2000 at the end of each year for…

A: Required :The discounted value of these cash flows.

Q: They plan to invest in an ordinary annuity that earns 7.2% interest compounded quarterly. Payments…

A: An annuity is a series of regular payments that are provided in exchange for a lump sum amount paid…

Q: In the following ordinary annuity, the interest is compounded with each payment, and the payment is…

A: It can be solved using NPER function in excel. =NPER(rate,pmt,pv,[fv],[type]) Rate The interest…

Q: You are given an annuity-immediate paying 14 for 14 years, then increasing by one per year for 8…

A: An annuity's present value is the current value of all of its future cash flows discounted, using a…

Q: An annuity has payments at the beginning of every three months starting today. The first payment is…

A: An annuity is a payment series that provides the holder with a periodic income in exchange for a…

Q: Leberland Corporation deposits $100,000 every year in a savings account (beginning at the end of the…

A: The objective of this question is to calculate the future value of an ordinary annuity. An ordinary…

Q: Two annuities are available for purchase that your client has identified. The first annuity pays…

A: It is a case of comparison of an annuity of payments. The decision is based on the net present value…

Q: what is the value of the annuity today

A: We can determine the PV of annuity to year 3 and then discount it to year 0 using PV formula. r =…

Q: Assume that you make monthly payments of $ 475 into an ordinary annuity paying 8% compounded…

A: Future value of ordinary annuity formula is: Future value of ordinary annuity is calculated by…

Q: Recently, More Money 4U offered an annuity that pays 5.1% compounded monthly. If $1,706 is deposited…

A: Monthly deposit (C) = $1,706 Monthly interest rate (r) = 0.00425 (i.e. 0.051 / 12) Monthly period…

Q: Lidia deposits $800 at the END of each year for 8 years in a savings account. The account pays 12%…

A: Future value is the value of an asset in the future over the years. It can be calculated as…

Q: An annuity pays $1000 at the end of each year for 5 years and then $2000 at the end of each year for…

A: The discounted value is present value of future cash receipts