June Stickney purchased an annuity on January 1, 2019, which, at a 12% annual rate, would yield $6,000 each June 30 and December 31 for the next 6 years. What was the cost of the annuity to Stickney? Round your answer to two decimal places. $ fill in the blank 4 Five equal annual contributions are to be made to a fund, with the first deposit on December 31, 2019. Determine the equal contributions that, if invested at 10% compounded annually, will produce a fund of $30,000 on December 31, 2024. Round your answer to two decimal places. $ fill in the blank 5 Beginning on December 31, 2020, 6 equal annual withdrawals are to be made. Determine the equal annual withdrawals if $11,000 is invested at 10% interest compounded

June Stickney purchased an annuity on January 1, 2019, which, at a 12% annual rate, would yield $6,000 each June 30 and December 31 for the next 6 years. What was the cost of the annuity to Stickney? Round your answer to two decimal places. $ fill in the blank 4 Five equal annual contributions are to be made to a fund, with the first deposit on December 31, 2019. Determine the equal contributions that, if invested at 10% compounded annually, will produce a fund of $30,000 on December 31, 2024. Round your answer to two decimal places. $ fill in the blank 5 Beginning on December 31, 2020, 6 equal annual withdrawals are to be made. Determine the equal annual withdrawals if $11,000 is invested at 10% interest compounded

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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K Mr. Deneau accumulated $94,000 in an RRSP. He converted the RRSP into a RRIF and started to withdraw $5100 at the end of every three months from the fund. If interest is 10.35% compounded monthly, for how long can Mr. Deneau make withdrawals? State your answer in years and months (from 0 to 11 months). He can make withdrawals for year(s) and month(s). B
Dylan contributed $700 at the end of every 3 months, for 4 years, into a Registered Retirement Savings Plan (RRSP) earning 3.50% compounded quarterly. a. What is the future value of the fund at the end of 4 years? $0.00 Round to the nearest cent b. What is the amount of interest earned over the 4-year period? $0.00 Round to the nearest cent
Brittany contributed $3,750 at the end of every 3 months, for 5 years, into a Registered Retirement Savings Plan (RRSP) earning 3.50% compounded quarterly. a. What is the future value of the fund at the end of 5 years? $0.00 Round to the nearest cent b. What is the amount of interest earned over the 5-year period? $0.00 Round to the nearest cent
To save for graduate school, a student invests $1470 semiannually in an ordinary annuity with 3% interest compounded semiannually. Determine the accumulated amount in the student's annuity after 15 years.
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 3.87% p.a. compounded half-yearly (2-3.87% p.a.) and the first scholarship will be first awarded 3.5 years after the date of the donation. (a) What is the amount of the annual scholarship (rounded to two decimal places)? a. 212767.99 b. 106479.89 c. 216169.57 d. 215020.17
75. Ned plans to donate $50 per week to his church for the next 60 years. Assuming an annual interest rate of 5.2% compounded weekly, find the present value of this annuity to Ned's church.
An insurer needs to make the following annuity payments to an individual: £744 paid at the beginning of each year for the first 5 years and then £654 paid at the beginning of each month for the next 5 years and then £798 paid at the beginning of each quarter for the following 8 years. Assuming a nominal rate of interest of 2.7% pa convertible quarterly throughout the entire period, how much total fund the insurer needs to hold today in order to meet these payments? Express your answer in £s to 2 decimal places. (correct answer: 53269.67) (need working out)
Mike Carlson will receive $35,000 a year from the end of the third year to the end of the 17th year (15 payments). The discount rate is 10%. The present value today of this deferred annuity is: Use Appendix B and Appendix D to calculate the answer. Multiple Choice $234,891 $201,165 $214,359 $219,889
How much can be paid in scholarship at the beginning of each month if $231,500 is deposited in a trust fund if interest is 5.6% compounded monthly?
Rosa has a annuity worth $20, 000 to help pay for expenses while they are in a year-long (12-month) masters program. The annuity earns 5.4 % compounded monthly. Using the present value annuity formula, they find the will receive $1708 monthly during this time, sent to them at the start of the month. Fill in the table to track how much money remains in the annuity after each month. Round answers to 2 decimal places and use rounded answers in subsequent calculations. Time (Months) 0 2 3 Balance at start of month (after payment) $ $ $ Interest Earned during Time Period $ s $ Balance at end of month $ 20,000 $ $ $
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 4.57% p.a. compounded half-yearly (j2=4.57% p.a.) and the first scholarship will be first awarded 3.5 years after the date of the donation. (a) What is the amount of the annual scholarship (rounded to two decimal places)? Question 9 Answer a. 127913.37 b. 255507.69 c. 260410.57 d. 258749.57 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 4.57% p.a. compounded half-yearly (j2=4.57% 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…
Baxter desires to purchase an annuity on January 1, 2023, that yields him five annual cash flows of $11,000 each, with the first cash flow to be received on January 1, 2026. The interest rate is 10% compounded annually. The cost (present value) of the annuity on January 1, 2023, is ________. (Use spreadsheet software or a financial calculator to calculate your answer. Round intermediary calculations two decimal places and round your final answer to the nearest dollar.) Group of answer choices $55,000 $28,481 $45,869 $34,462

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