On his 40th birthday, Mr. Ramos decided to buy a pension plan for himself. This plan will allow him to claim P10,000 quarterly for 5 years starting 3 months after his 60th birthday. What one-time payment should he make on his 40th birthday to pay off this pension plan, if the interest rate is 8% compounded quarterly? A. P163,514.33 B. P33,538.38 C. P430,983.52 D. P397,445.14

On his 40th birthday, Mr. Ramos decided to buy a pension plan for himself. This plan will allow him to claim P10,000 quarterly for 5 years starting 3 months after his 60th birthday. What one-time payment should he make on his 40th birthday to pay off this pension plan, if the interest rate is 8% compounded quarterly? A. P163,514.33 B. P33,538.38 C. P430,983.52 D. P397,445.14

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications

Section: Chapter Questions

Problem 13E

See similar textbooks

Similar questions

Madam plans to fund his individual retirement account with the maximum contribution of P20,000 at the end of each year for the next 10 years. If Madam can earn 10% on his contributions, how much will he have at the end of the tenth year? (rounded) P122,900 P318,740 P200,000 P518,800 P423,050
A man wishes to have P10,000.00 when he retires 20 years from now. If he can expect to receive 4% annual interest, how much he set aside in each of 20 equal annual payment beginning on the first day of the month? O a. P352.90 O b. P382.90 O c. P322.90 O d. P328.90
6) Jamal plans to retire in 17 years. He is saving $2000 every month in a retirement savings account paying hím a long-term interest of 9% compounded semi-annually. What will be the size of his payments per month from the ordinary anmrity for 20 years following his retirement? A) $957 836 C) S8618 D) S9I 547 B) S8372 E) S8721
Please answer my question
9. Daniel Plans to fund his individual retirement account, beginning at the end of each year with 20 annual deposits of P2,000, which will continue for the next 20 years. If he can earn an annual compound interest rate of 8 percent on his deposits, what will be the amount in the account upon retirement?
Colin is trying to decide whether he should make his IRA contribution at the beginning of the year or at the end of the year. He wants to save $5,000 per year for 25 years in his IRA that can earn 7% per year. What would be the difference in his account value if he made the payments at the beginning of each year rather than at the end?a. $338,382.b. $22,137.c. $28,041.d. $316,245.
After one year of employment, Hasan has joined his company's pensionplan. He estimates he will retire in 35 years, and will be retired for a total of 25 years. During his retirement, he will need S50, 000 at the beginning of each year. At a discount rate of 4%, compounded quarterly, what should be his savings goal? a. S807, 655b. S963, 258c. S2, 184,431d . S3, 878, 614
An employee wants to retire and receive P 5 000 a month. She wants to pass this monthly payment to future generations after her death. She can earn an interest of 8% compounded annually? How much will she need to set aside to achieve her perpetuity goal?
A man is left with an inheritance from his father. He has an option to receive P2M at the end of 10 years, however he wishes to receive the money at the end of each year for 5 years. If interest rate is 8%, how much would he receive every year? a. 352,533.00 b.200,000.00 c. 400,000.00 d.232,020.00
Mr. Reyes wants to retire 15 years from now. Aside from the retirement benefits from his company and the social security benefits that he will get, Mr. Reyes wants to have an additional 2 million pesos when he retires. To achieve this goal, he will make equal annual deposit at the end of each year for the next 15 years in an account that earns 5% interest per annum. How much should Mr. Reyes deposit each year?
EZ Leifer plans to retire at the age of 65 and believes he will live to be90. EZ wants to receive an annual retirement payment of $50,000 at thebeginning of each year. He sets up a retirement account that is estimated toearn 6 percent annually.a. How much money must EZ have in the account when he reaches 65 yearsold?b. EZ is currently 29 years of age. How much must he invest in this accountat the end of each year for the next 36 years to have the required amount inhis account at age 65?
You annually invest $1,000 in an individual retirement account (IRA) starting at the age of 30 and make the contributions for 10 years. Your twin sister does the same starting at age 45 and makes the contributions for 20 years. Both of you earn 6 percent annually on your investment. What amounts will you and your sister have at age 65? Use Appendix A and Appendix C to answer the question. Round your answers to the nearest dollar.Amount on your account: $ Amount on your sister's account: $ Who has the larger amount at age 65?-Select-You haveYour sister hasItem 3 the larger amount.