Dr Kapoor has contributed $10,000 yearly into an RRSP from age 25 to 50 (25 deposits). At age 50, he makes no further contributions. At age 65, he purchases an annuity to pay himself a monthly pension for the next 30 years, first payment due in one month. Find the amount of the pension if from age 25 7% c.a. and his nenci 65 int

Dr Kapoor has contributed $10,000 yearly into an RRSP from age 25 to 50 (25 deposits). At age 50, he makes no further contributions. At age 65, he purchases an annuity to pay himself a monthly pension for the next 30 years, first payment due in one month. Find the amount of the pension if from age 25 7% c.a. and his nenci 65 int

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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A special endowment assurance policy is issued to a male aged 55 and a female aged 50 with a term of 20 years. A benefit of $500,000 is payable immediately on the last death of the two lives. There is a survival benefit of $600,000 if both of them are alive; if only one of them is alive, the survival benefit is $400,000. Premiums are payable annually in advance over the term of the policy as long as one of them is alive. The interest rate is 4% per annum and the mortality basis is PA92C20. Calculate the net annual premium for this policy. Correct your answer to the nearest cent.
jitu
A pension scheme provides retirement benefits to a group of 200 pensioners currently aged 65 exact. The scheme pays an annual income of £19,000 annually in arrears if the pensioner is alive. A lump sum of £50,000 is paid at the end of the year of death. During the first year 3 members died. (i) (ii) Basis: Calculate, showing all working, the mortality profit or loss for the year. Explain why the mortality profit or loss has arisen. Mortality: Interest: AM92 Ultimate 6% p.a. effective
Subject-Acounting
Paul intends to retire in 15 years and would like to receive $1,500 every month for 20 years, starting at the end of the first month in which he retires. How much must he have at the beginning of retirement if interest is 5% compounded annually? Select one: a. $191,834.03 b. $229,415.16 c. $228,235.00 d. $227,287.97 e. $230,349.83
Annuity
As part of his 401(k) retirement plan at work, Ken Lowery invests 5.0 percent of his salary each month in the Capital Investments Lifecycle Fund. At the end of this year, Ken's 401(k) account has a dollar value of $210,800. If the fund charges a 12b-1 fee of 0.75 percent, what is the amount of the fee? (Round your answer to 2 decimal places.) 12b-1 fee
4. A select life aged 60 purchases a 10-year endowment insurance with $100,000 sum insured. Premiums are payable annually in advance and death benefits are payable at the end of the year of death. Assume that (i) commission is 10% of the first premium and 4% of cach subsequent premium, (ii) other expenses are $50 at issue, and $5 at each subsequent premium date, (iii) mortality follows the Standard Select Life Table, and (iv) interest is 5% per year. Calculate the annual premium.
Sam started working for the LED company on his 25th Birthday. Each month P30 was withheld from his salary and matched by an equal contribution from his employer, to be kept into a retirement fund. At the end of each year the contributions for the year were invested in a trust fund where it earned 8% interest compounded annually. Pedro retired on his 60th birthday and elected to receive an annuity of 20 annual payments, the first to be received immediately. What was the amount of each payment? DRAW THE CASH FLOW DIAGRAM. Use 4 decimal places in between process and 2 decimal for the final answer kindly substitute the values on the formula you're going to use. Thankyouu
A person joins a pension plan at age 40 (40th birthday). How much will s/he have to pay into the pension fund each year in order to accumulate a balance of $500,000 by the time s/he retires (age 65)? Assume that the final payment is on his/her 60th birthday. Interest rates are 9% compounded semi-annually.
A grateful alumnus wishes to provide a scholarship of $1,800 per year for 4 years to his alma mater, with the first scholarship awarded on his 59th birthday. If the money is worth an annual rate of 5.1%, compounded annually, how much money must he donate on his 49th birthday? Round your answer to the nearest cent. O a. $1,362.43 b. $2,601.05 c. $5,764.90 d. $4,069.80 e. $5,485.16
Mike wants to donate $5,000,000 to establish a fund to provide an annual scholarship in perpetuity. The fund will earn an interest rate of 4.47% p.a. compounded half-yearly (2=4.47% p.a.) and the first scholarship will be first awarded 3.5 years after the date of the donation. (b) Assume that two years after the donation, Mike needs to withdraw $1,000,000 from the fund and use the remaining amount to provide an annual scholarship in perpetuity. The time of the first scholarship will be unchanged (3.5 years after the date of the donation). What is the new annual scholarship amount (rounded to two decimal places)? a. 101959.37 O b. 206197.54 O c. 203631.53 O d. 207511.86

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