Cuestion HeipPhilip warts to suçolemert his persion ty $440 per monith with income from his investnects. His investments pay him morithly and eam 11 pa What value of investrenti munt Philp have in hir portolko toOanerate enough interest to give him his desirod noome?The value of nvestmerts must bo(Mound the tral anENor lo the nearent cent as needed. Round al intermedate valies to sx docimal places as neoded

The present value is an indication that the money in hand today is more valuable than the same…

Philip warts to supplement his pension by $440 per month with income trom his investments His investments pay hm monthly and ean 11 pa What vale of imvestments must Phlp have in his portolo to generste enough nterest to give him his desired ncome? The value of investments must beS Mound the fnal anor lo the nearest cent as needed. Round al intemedate values to s decimal places as needed)

Philip warts to supplement his pension by $440 per month with income trom his investments His investments pay hm monthly and ean 11 pa What vale of imvestments must Phlp have in his portolo to generste enough nterest to give him his desired ncome? The value of investments must beS Mound the fnal anor lo the nearest cent as needed. Round al intemedate values to s decimal places as needed)

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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vear fromLIow. urn I, Wa. the payments occurred i orever? 5. Caiculating Annuity Cash Flows. If you put up $20,000 today in exchange for a 8.5 percent, 12-year annuity, what will the annual cash flow be?
4. John makes deposits of 1,100 at the end of each year for n years into a fund. At time n, he uses the accumulated value of the fund to purchase an annuity immediate that makes payments of 30,102.71 at the end of each year for 15 years. The annual effective interest rate is 13%. Calculate n. a. n = 24 b. n = 26 n = 28 d. n = 20 e. n = 18 نه ن ن ف ق
How much would you be willing to spend for an annuity that pays $2,500 at the end of each year for three years, assuming you could earn 5.5% on other LIET similar investments? Select one: O a. $5,494 O b. $4,783 O c. $6,087 O d. $6,408 O e. $6,745 ہے
You have a chance to buy an annuity that pays $5,700 at the end of each year for 3 years. You could earn 5.5% on your money in other investments with equal risk. What is the most you should Dav for the annuity? a $15,378.22 b. $16,454.70 c. $11,687.45 d. $14,763.09 e. $13.532.83
What annual deposit is necessary to have $15,000 in 7 years if all the money is deposited at 1.5% interest compounded annually? (a) State the type. amortization sinking fund ordinary annuity present value of an annuity present value (b) Answer the question. (Round your answer to the nearest cent.) $
You are to make monthly deposits of $825 into a retirement account that pays an APR of9.7 percent compounded monthly.If your first deposit will be made one month from now, how large will your retirementaccount be in 32 years? (Do not round intermediate calculations and round youranswer to 2 decimal places, e.g., 32.16.)
Find the amount of periodic payment necessary for the deposit to a sinking fund. (Round your answer to the nearest cent.)$ Amount Needed A Frequency n Rate r Time t $45,000 monthly 9% 20 yr
14 Ifyou put up $55.000 today in exchange for a 6.5 percent, 16-year annuity, what wil the, annual cash flow bet (Do not round Intermmediate.coleulations and round yourenswer to 2 decimal places, e.g., 32.16.)
You have a chance to buy an annuity that pays $25,000 at the beginning of each year for 10 years. You could earn 8.5% on your money in other investments with equal risk. What is the most you should pay for the annuity? You are not required to show calculations but you must list the inputs used such as N, PV, FV, etc. O $346,484.41 O $177,976.57 O $164,033.70

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