Now let’s pretend that we buy an annuity at the age of 70 with how much money we have in total from our index fund investing. Use this number: $1,188,506.12 Let’s buy a twenty year annuity that pays us 5% APR compounded monthly. 4. How much money will we get paid each month? 5. How much money in total will we get paid back? 6. How much interest will we make from the annuity?
Now let’s pretend that we buy an annuity at the age of 70 with how much money we have in total from our index fund investing. Use this number: $1,188,506.12 Let’s buy a twenty year annuity that pays us 5% APR compounded monthly. 4. How much money will we get paid each month? 5. How much money in total will we get paid back? 6. How much interest will we make from the annuity?
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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Now let’s pretend that we buy an annuity at the age of 70 with how much money we have in total from our index fund investing. Use this number: $1,188,506.12
Let’s buy a twenty year annuity that pays us 5% APR compounded monthly.
4. How much money will we get paid each month?
5. How much money in total will we get paid back?
6. How much interest will we make from the annuity?
Transcribed Image Text:Annuity Investing
Now let's pretend that we buy an annuity at the age of 70 with
how much money we have in total from our index fund
investing. Use the number you got above in #2 (hint: it should
be somewhere between one and two million dollars btw).
Let's buy a twenty year annuity that pays us 5% APR
compounded monthly.
4. How much money will we get paid each month?
5. How much money in total will we get paid back?
6. How much interest will we make from the annuity?
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