Puan Elly is planning to retire in 20 years and she plans begin withdrawing RM 50,000 anuallannually at the point of time.She is expected to live 20 years

Q: ally into a life insurance fund for the next 5 years, at which time he plans to retire. Instead of a…

A: The given problem can be solved using FV and PMT function in excel. FV function computes amount…

Q: UVW will invest £1, 600 per quarter for her retirement at 3% compounding quarterly for 32 years. She…

A: Present value refers to the discounting of the future cash flow. The current value of the future…

Q: y is retiring from his job soon at which time his employer will make the following offer: A…

A: Present value is the equivalent today of the future cash flow based on the time value of money and…

Q: is expected to be received in 5 years and her last annual payment is expected in 10 years. She can…

A: Annual payment=$49900Interest rate=12.84%Period= 5 years

Q: ade a 20-year retirement plan and according to his plan, he aimed to withdraw 6000 TL at the end of…

A: Annuity grow by some constant amount of gradient and due to this growth amount grow much amount.

Q: In December 2020 Sally purchased an annuity that pays her $1,000 per month for 16 years. She paid…

A: Given in the question: Annuity purchased for = $150,000 During the year 2021, Sally has received the…

Q: Marilyn wishes to retire at age 65 with $2,000,000 in the bank. At the age 21, she decides to begin…

A: Calculate the monthly payments as follows:MS-Excel --> Formulas --> Financials -->PMT

Q: a. Without doing any calculations, predict which one will have the most in his or her retirement…

A: Correct option is A Joe will have more balance as he started investing earlier and has gained…

Q: Magnus wishes to have $1,500,00 when he retires in 44 years. What are the monthly payments he must…

A: Future value of annuity = P * [ (1+r)^n  - 1 ] /r  Where, Future value of annuity = 150000 n = 44 r…

Q: When Joe and Sarah graduate from college, each expects to work a total of 45 years. Joe begins…

A: As per the given information: Joe and Sarah expected to work - 45 yearsJoe starts investing…

Q: receives his first $121,890.95 payment in 3 years and his last $121,890.95 payment in 7 years, then…

A: The rate of return is used to assess an investment's profitability. It determines the gain or loss…

Q: Determine the annual interest rate he will need to meet his goal.

A: Interest Rate: With the help of interest rate, present value, or future value of the cash flows can…

Q: Michael and Ellie plan on retiring 32 years from today. At that time, they plan to have saved the…

A: A deposit is a reserve amount of money that an individual keeps aside on a periodic basis to achieve…

Q: Bobbi opens an IRA account in which she deposits $3,000 per year until she retires in 50 years. If…

A: The accumulated amount can be calculated with the help of future value of annuity function

Q: Timothy is retiring from his job soon at which time his employer will make the following offer: A…

A: To help Timothy decide which option to choose, compare the present value of the annuity (the $15,000…

Q: Harper expects to live for 20 years after she retires at 65. If her investments continue to earn the…

A: I have provided the answer above for you. See the answer I provided above to understand the given…

Q: Lovely is now 19 years old asnd would want P2.5 million on her 45th She intends to make 11 annual…

A: STEP 1 Future value and Present value are indeed outcomes with amounts that are the polar opposite…

Q: Nasser is saving for his retirement by making deposits of $1,400 on each birthday into a savings…

A: Given, The amount deposited $1400 Rate is 4.4%

Q: a) how much savings would Bilbo have in year 25 (t=25)?  b) how much at most would Bilbo’s…

A: Given, APR = 6% Monthly compounding rate i = (1+6%)112-1 Monthly compounding rate i =0.49% Monthly…

Q: Kate is 28 years old today and is beginning to plan for her retirement . She wants to set aside an…

A: Computation:

Q: An engineer planning for her retirement will deposit 10% of her salary each year into a stock found.…

A: Solution- Year 0 =20000 Year 1 =12000 Salery to increase at 5% so her saving will increase by 5% for…

Q: Sam is planning to retire in the next few years and wondering how much his annual CPP would be if he…

A: There are various factors on which the CPP retirement pensions depends such as: 1) Age in which the…

Q: Sunrise Industries wishes to accumulate funds to provide a retirement annuity for its vice president…

A: An annuity is a type of insurance agreement that is provided and dispersed by financial firms with…

Q: Irene plans to retire on December 31st, 2019. She has been preparing to retire by making annual…

A: The two major aspects of time value of money are compounding and Discounting. In compounding the…

Q: A woman is planning for retirement in 30 years and decides she can deposit $6,000 each year on…

A: An Annuity Due is a stream of regular periodic payments made at a beginning of period for a…

Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.